“Those documents stipulate that public supervisory authorities will be able to impose more stringent requirements if they see any bubbles growing in the economy, if they see any imbalances. Then they will be able to impose the requirements that will be more stringent than the minimum Basel requirements,” she told the Lithuanian Radio.
The EU finance ministers reached a political agreement on Tuesday under which Member States could require the banks’ shareholders and executives to hold an additional capital buffer if there were any threats to banking stability.
The country holding rotating EU presidency will now have to reach an agreement with the European Parliament.
New legislation is aimed at implementing the Basel Committee’s requirements so that the banks would have sufficient capital and would not need public bail-outs in case of financial crises.
New directive, if agreed with the European Parliament, should come into effect next year and should be transposed into the national law by 2019.
2012-05-17 11:28
EU decision to increase capital requirements should not change lending policy of Lithuania’s banks
The European Union’s (EU) decision to increase capital requirements for banks should not affect lending policy of Lithuania’s banks, Finance Minister Ingrida Šimonytė has said.
Ingrida Šimonytė / Juliaus Kalinsko / 15min nuotr.
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