EC wants stronger and more responsible banks

Thursday July 21st, 2011

The European Commission (EC) has brought forward proposals to ‘change the behaviour’ of the 8000 banks currently operating in Europe.

Officials said that the ‘overarching goal of this proposal’ is to strengthen the resilience of the EU banking sector while ensuring that banks continue to finance economic activity and growth.

Banks have been at the centre of the financial crisis the global economy is facing since 2008.

Internal Market Commissioner Michel Barnier said: “The financial crisis has hit European families and businesses hard. We cannot let such a crisis occur again and we cannot allow the actions of a few in the financial world to jeopardize our prosperity. That’s why today, we have brought forward proposals to make the more than 8,000 banks that are active in Europe stronger.

“The banking sector will have to hold more capital and better quality capital every time it is taking risks It is a tremendously important step forward in learning the lessons from the crisis and adopting a new approach to risk. I am pleased to note that Europe continues to take the lead and is the first jurisdiction at a global level to transpose the G20 commitments. Only when all these rules are in place can we really say we’ve fully learnt the lessons of the crisis.”

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