Brussels, 05/04/2012 (Agence Europe) - The Association of European Chambers of Commerce and Industry, Eurochambers, is concerned that the draft CRD IV legislation to increase bank capital requirements will cause a credit crunch for small businesses in Europe, explaining in a press release: “It is not only the impact of the content of the foreseen regulatory changes, but also their timing that needs to be carefully considered. Most pressingly, policy-makers must not lose sight of the fact that business financing conditions will most probably be further aggravated in the short-term as a result of the fast-track recapitalisation plans imposed on some European banks in late 2011, to be completed by June 2012”.
Eurochambers approves of the idea of increasing the cap on loans to retail investors and reducing the amount of collateral required from small businesses, two measures currently being studied by the European Banking Authority (EBA), but says this does not go far enough and the measures should be a full part of the current interinstitutional negotiations. It explains: “Risk weights for SMEs should be lowered and the retail limit for SMEs should be raised from €1 million to €2 million without waiting for a further review of the CRD IV by the EBA. ..Moreover, Eurochambers believe that a thorough and independent impact assessment on SMEs' access to finance in the context of the Basel III/CRR-CRD IV should be carried out without delay”.
Eurochambers warns: “The introduction of a risk-independent leverage ratio under Basel III will lead to higher costs for trade and export financing.... SME promotional/development banks must be exempted from the leverage ratio under Basel II.' (MB/transl.fl)