Basel II

In July the Commission adopted a Directive proposal for a new capital requirements framework for banks and investment firms suitable for the 21st century.

The proposal will ensure the coherent application throughout the EU of the new international capital requirements framework recently agreed by the Basel Committee on Banking Supervision (‘Basel II’). By making sure that financial institutions’ capital is more closely aligned with the risks they face, the new framework will enhance consumer protection, reinforce financial stability and promote the competitiveness of European industry.