Brussels, 20/05/2011 (Agence Europe) - On Friday 20 May, the European Commission attempted to reassure the 7 member states concerned about the draft CRD 4 directive being prepared by the Commission to transpose the Basel III rules on higher quality and quantity of bank capital requirements A spokesperson for EU Internal Market Commissioner Michel Barnier said on Friday that the comments made by the commissioner after the ECOFIN Council on Tuesday answered a number of the questions that had been raised in a joint letter from the 7 countries, including Spain, the UK and Sweden. The spokesperson said the Commission hoped to unveil the draft directive in the next few weeks, reflecting a number of specifically European issues and the ambitions of the world's main bank supervisor on the Basel Committee (see EUROPE 10213). At the ECOFIN meeting on Tuesday, Barnier said it was essential to introduce new bank capital requirements despite opposition from the banking industry (see EUROPE 10382).
The joint letter, leaked to FT Deutschland, states that the high level of harmonisation recommended by the European Commission would restrict national authorities' power to demand higher liquidity ratios and would not cater for the specific situation in different countries. They say that such an approach could damage financial stability in the EU27 and undermine European credibility. (M.B./transl.fl)