According to insiders, European banks could soon look forward to a weakening of the rules known as Basel III.
(Photo: dpa)
Frankfurt Banks in the European Union will have to prepare for the introduction of stricter rules to mitigate risks from 2025 onwards. The finance ministers of the 27 EU countries agreed on Tuesday on a common position on the relevant proposals from the European Commission.
They now have to be agreed with the European Parliament. “It’s a good compromise that finds the right balance,” said Federal Finance Minister Christian Lindner (FDP) during the meeting with his colleagues.
Specifically, it is about the implementation of the so-called Basel III reform package. It was launched by the EU and the G20 countries after the financial market crisis of 2008/2009 in order to reduce risks in the financial system and to be better prepared for future crises. The aim is for banks to have to set aside more capital in the long term in order to counteract risks.
An important part of the legislative package concerns the handling of loans for companies that are not rated by rating agencies. Especially small and medium-sized companies do not get such a credit rating that indicates how risky it is to invest in them. The Commission therefore proposed that banks have to set aside more capital when lending to unrated companies. The institutes are to gradually implement this by 2032.
Top jobs of the day
Find the best jobs now and
be notified by email.
Lindner said the transition periods give banks enough time to adapt to the new standards. “In this way, we are securing investment-friendly framework conditions, especially in these economically challenging times.” Critics had previously warned that the measures could lead to financing bottlenecks for small and medium-sized enterprises.
In other parts, states have adapted the Commission’s proposal to take national circumstances into account. There are some special rules for smaller banks, as the press release shows. Iris Bethge-Krauß from the Federal Association of Public Banks (VÖB) spoke of “important improvements” in the position of the federal states compared to the Commission’s proposal, but there is still no solution for the sharp increase in capital requirements.
More: Deutsche Bank wants to pay employees an inflation bonus