Brussels, 01/07/2003 (Agence Europe) - The European Commission has published a third consultation paper on a new capital requirements framework for banks and investment firms. The directive, expected for 2004, adjusts the new international Basel II agreement to European scale. Basel II is on capital requirements and is due to come into force in 2006. The new rules will take greater account of risk analysis. According to a Commission press release, an impact study shows that capital requirements should be less binding for loans to small and medium-sized companies, a point that caused great concern in Parliament and among business representatives. Commissioner Frits Bolkestein assures that the development of rules for the implementation of the new Basel agreement is now "very well advanced". He considers that they will be good for "financial stability, good for financial institutions and their customers". Consultation will end on 22 October. (The consultation document and the impact study are available on http: //europa.eu.int/comm/internal_market/regcapital/index_en.htm).