Capital Requirements (Basel III) (Directive)

Stricter capital requirements reduce the likelihood of banks having to take state recapitalization measures. They must, however, be complemented by a reliable insolvency statute. The countercyclical capital buffer is problematic in many ways. Investments in state bonds must be hedged by own funds. If the Basel capital requirements are implemented by the EU only, the quality of Europe as a business location would be weakened without strengthening the stability of the financial market.