EU Leaders Move Closer to Drafting Bassel Bank Capital Rules

“The European Union is closer to settling how to apply Basel bank capital rules to its lenders after officials and lawmakers drafted potential compromises on parts of the regulatory overhaul.

Officials and lawmakers said a deal on the legislation was in sight following negotiations in Brussels. The measures, known as Basel III, would more than triple the core capital that lenders must hold as a buffer against insolvency, and require banks to meet minimum liquidity rules. The European Parliament has called for curbs on banker bonuses, too.

There “was a good atmosphere and a political willingness to solve the problems,” said Othmar Karas, the EU Parliament lawmaker leading the work on the draft rules. “I think we’ve done a good job today.”

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