About: capital adequacy

UK seeks tougher insurance rules despite possible EU challenge

Britain intends to implement a tougher version of EU rules on capital adequacy for its own insurers, even at the risk of a legal challenge, a top regulator has said.

MEPs lament ‘piecemeal’ laws on bank capital

MEPs have demanded more information from the European Commission ahead of talks with global banking policymakers designed to overhaul rules on how much capital is on banks' balance sheets.

EU to tighten bank lending to offset risks

European Union finance ministers agreed yesterday (7 July) to tighten bank loans during periods of economic growth in order to boost liquidity and make funds available for when recession hits. The agreement came as national regulators proposed to build a bank liquidity buffer to guarantee a "survival period of at least one month".

EU delays financial overhaul over bankers’ pay

The European Commission's plans to toughen up bank capital rules are being delayed amid disagreement over how far supervisors should be allowed to meddle with bankers' pay, according to sources.

Parliament backs tighter capital rules for banks

The European Parliament yesterday (6 May) adopted tougher bank capital rules in a further step to restore confidence to markets shaken by the worst financial crisis in decades.

Finance ministers push ahead with financial services agenda

European finance ministers, meeting on 11 October 2005, have pushed through two important financial services directives and agreed on a strategy for future integration of financial service markets throughout the EU. 

Basel II gets go-ahead from EP

Banking and SME bodies have welcomed the Parliament’s first reading vote adopting the capital requirements directive (CRD).

The New Capital Requirements Directive: what pieces are still missing from the puzzle?

The policy briefing 'The New Capital Requirements Directive: what pieces are still missing from the puzzle?' looks at the uncertainty that remains over the legislation even after seven years in production. The European Parliament is still very unhappy over the limited role it will have in the 'comitology' process which is to be carried out under the Lamfalussy procedures. Concrete rules for a role for Parliament fell with the failure of the European constitution and Parliamentary dissatisfaction over this issue and some substantive provisions of the proposal could yet lead to long delays for this troubled directive. The author of this paper is Rym Ayadi of the Centre of European Policy Studies.

Parliament holds out for ‘call-back’ on Basel II

MEPs have endorsed the proposed directive on capital requirements with the proviso that they have the right of recall on the details.

Basel II and the Capital Requirements Directives

Rules on capital requirements are designed to protect savers and investors from the risk of the failure or bankruptcy of banks. They ensure that these institutions hold a minimum amount of capital. The Capital Requirements Directives were adopted in 2006 and are currently under review.