Capital Requirements Directive:

Type: News   Reference: 93328   Duration: 00:02:21  Lieu: Strasbourg, France - European Parliament
End production: 16/04/2013   First transmission: 16/04/2013
- extracts from the statement by Othmar KARAS (EPP, AT), rapporteur Background: The main elements of the agreement are: Capital - Currently, banks and investment firms need to have a total capital of at least 8% of risk weighted assets. In the future, while the total capital an institution will need to hold remains at 8%, the share that has to be of the highest quality – common equity tier 1 (CET1) – increases from 2% to 4.5%. Large financial institutions posing systemic risk will be required to ensure additional solvency buffers. There will be flexibility for Member States to ask individual banks to hold more capital. Liquidity - Banks will be required to retain enough easy-to-sell assets to survive a 30-day market crisis. Bonuses - Bonuses were the main source of disagreement between Member States and MEPs, who insisted that excessive risk-taking should be curbed by capping banker's annual bonuses. The basic salary-to-bonus ratio will be 1:1, but could be raised to a maximum of 1:2 with the approval of shareholders. This higher ratio would require the votes of at least 66% of shareholders owning half the shares represented, or of 75% of votes if there is no quorum. Transparency - The legislation will require banks to disclose profits made, taxes paid and subsidies received country by country, as well as turnover of employees. From 2014 these should be reported to the Commission and from 2015 made fully public.

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00:00:00 Title 00:00:05
00:00:05 Exterior shot of the European Parliament, Strasbourg, France (1 shot) 00:00:05
00:00:10 SOUNDBITE (German): Othmar KARAS (EPP, AT), rapporteur: "It is a success for the Single market. We are not regulating some banks, we will regulate them all. We do not use exemptions for all, but there will be a common approach for all banks." 00:00:22
00:00:32 SOUNDBITE (German): Othmar KARAS (EPP, AT), rapporteur: "We stabilizing European banks and we are promoting the Financing of the real economy, we are strengthening the provision of credit lines to small and medium size enterprises and we are levelling the playing field and allowing that there will be a lower tax burden on citizens in cases of crisis." 00:00:20
00:00:52 SOUNDBITE (German): Othmar KARAS (EPP, AT), rapporteur: "On one hand we had the Basel objectives that had to be implemented and other we have to taken into consideration the impact on the real economy, on growth and jobs in the Banking sector and also we wanted to extend the corporate functions as well." 00:00:22
00:01:14 SOUNDBITE (German): Othmar KARAS (EPP, AT), rapporteur: "Yes, we have two liquidity ratios, yes we are promoting genuine financing of the ream economy by allowing better provision of credit to SME's reducing the risks involved. And of course when it comes to the banking sector we have tried to make it clearer and ensured more responsibility by recognising the sector itself by having regulation for everybody, by having a cap on bonuses, by having a fix ratio for remuneration and we have to see figures reported to the Commision on turn over, the number employed and profits, etc." 00:00:49
00:02:03 cut away shots, (3 shots) 00:00:18
00:02:21 END 00:00:00
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