Brussels, 13/10/2004 (Agence Europe) - The SME employers' representative, UEAPME, has called for the Capital Adequacy Directive to be relaxed. This directive was presented by the European Commission in July (see EUROPE of 15 July, p.14). This text on banking solvency is to take effect from 2007. It transposes the "Bâle II" agreement, which was concluded by the industrialised countries last June, into Community law. On the one hand, it allows banks to reduce the own resources needed to cover risks linked to loan operations, and on the other, it imposes more restrictive rules on how these risks are assessed.
However, according to UEAPME's financial expert, Gerhard Huemer, the assessment procedures are in danger of being more complex for small loans (below 50,000 EUR) than for larger sums, which would make access to capital harder for small and medium-sized enterprises. The SME association therefore insists that credit institutions should be able to use a "standard" risk assessment procedure permanently, rather than using internal procedures. The SMEs are concerned at the lack of transparency in these internal assessments, which could make loans more arbitrary. The SMEs are also calling for the "collateral" (allowing a loan to be guaranteed) to be based on current practice, rather than just the borrower's material property.