Revised Capital Requirements for Banks (Basel II) (Directive)
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Financial Markets

Revised Capital Requirements for Banks (Basel II) (Directive)

Following the October 2008 amendments of the Capital Requirements Directive a new amendment has been proposed once again. This time the capital requirements for the trading book and for re-securitisations are raised and the remuneration models of banks are reviewed.

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The proposed amendments strengthen the stability of the financial system, though at the expense of economic growth. Taking into account risks emanating from remuneration models is consistent. However, the intended shifting of the burden of proof is not convincing. It contravenes the need to avoid a credit crunch by means of risk-adequate securitisations.

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Revised Capital Requirements for Banks (Basel II) COM(2009) 362 (publ. 08.01.2014) PDF 114 KB Download
Revised Capital Requirements for Banks (Basel II) COM(2009) 362