The European debate on bank capital is not just about Europe
Nicolas Véron 04 May 2012
Europe’s finance ministers are currently deciding on the legislation intended to implement the Basel III international agreement on bank capital, leverage, liquidity, and risk management. This column argues that many officials, within Europe and beyond, severely underestimate the importance of this debate for reaching a global standard for financial regulation.
The EU’s finance ministers are furiously debating the piece of banking legislation known as CRD4/CRR (the abbreviations stand for the fourth Capital Requirements Directive and the Capital Requirements Regulation). The measure is intended to implement the Basel III accord on bank capital, leverage, liquidity and risk management, which was adopted at the global level by the Basel Committee on Banking Supervision in late 2010.
There are two main unresolved issues.
EU policies International finance
eurozone, financial regulation, BASEL III, Capital Requirements Directive, Capital Requirements Regulation