|
CNBC'S MOST SHARED
- Economic Stimulus-For News
- S&P Closes Above 1,000 Amid Economic Hopes
- The World’s Most Beautiful Currencies
- Commodities on Fire
- Geithner Warns Regulators to Back Reform Plan
- Berkshire Hathaway Shares Hit $100,000 For First Time Since January
- Four Ways to Fight Minimum Payment Increases
- Social Climbers: Facebook Grows Up
- Buy Time Warner? Really?
- PepsiCo Strikes Deal to Acquire Two Largest Bottlers
- Obama Foreclosure Plan Shows "Uneven" Early Results
- Geithner Warns Regulators to Back Reform Plan
- Public Passions Rise Over Health Care Overhaul
- Toyota Posts First-Quarter Loss, Lifts Cautious Forecast
- CVS Caremark Posts Higher Profit, Raises View
- Duke Energy's Profit Hurt as Energy Demand Ebbs
- Donald Trump Back in Control of Atlantic City Casinos
- Goldman Employees Told No Big Purchases: Report
- Berkshire Hathaway Shares Hit $100,000 For First Time Since January
- Key Milestones for the Markets
- Your Chance to Make 'a Ton of Money': Stock Pickers
- Commodities on Fire
- The Ticket Sales Combine Lands In Pittsburgh
- FTC to Apple and Google: Too Little Too Late?
- Crude Oil Will Not Rise Past $75: Gartman
- Twittering for Profits
- More Lawyers Than Laws in Jackson Courtroom
Text Size 
New European Union laws designed to force banks to strengthen capital buffers will be unveiled in October, part of a regulatory drive stop a repeat of the global financial crisis, the Financial Times reported on Tuesday.
 |
Armando Franca / AP Flags of member states of the European Union. |
The paper said a draft report expected to be backed by EU finance ministers in Brussels on Tuesday says that there is a "strong case" for curbing existing rules on banks' funding needs.
Critics say existing rules exacerbate the ups and downs of economic cycles.
The FT said it had learnt the report recommends accounting reforms and other policy measures to build more resilient capital "buffers" during good economic times.
It says the report shows that Brussels intends to present legislation in three months' time that would introduce "dynamic provisioning" for Europe's banks.
The aim of the new laws would be to make it easier for banks to build up provisions in good times without having to assign the money to specific impaired assets. These funds could then be used to weather future economic storms.
More From CNBC.com
- UBS Says It Stays Committed to US Brokerage
- Key UK Finance Regulations Delayed: Report
- Bank of America Topples UBS as World Wealth Manager
The FT said one of the ideas that EU finance ministers may discuss is to limit the impact on capital requirements of downgrades in credit ratings.
Print
Email
Data is a real-time snapshot *Data is delayed at least 15 minutes