Brussels, 26/08/2003 (Agence Europe) - The new draft directive on the minimum own resources to be held by lending institutions (the Basel II directive) fails to satisfy the European Parliament's rapporteur, Alexander Radwan, or fellow Bavarian CSU MEP Ingo Friedrich (see EUROPE of 2 July, p.11).
The European Commission has opened a third round of consultations over the document, due to be concluded on 22 October.
The two MEPs note that serious improvements will be needed ahead of the Basel Committee meetings in the autumn before the EP will be happy with the proposal. Acknowledging that the new rules should ensure greater transparency, they point out that the European Parliament will be calling for changes to the text if a series of problems are not ironed out.
They say improvements are required with regard to capital requirements for loans to small and medium-sized enterprises and start-up loans.
Messrs Radwan and Friedrich warn that the directive must not further restrict companies already tightened room for financial manoeuvre.