• 15-MAY-2012

Tighter regulation to discourage risk-taking in banking sector

In September 2010 the world's central bankers agreed a package of measures known as Basel III, which will require banks to substantially increase the capital they hold. The purpose of these measures is to lower the risk of another banking crisis caused by risky lending and investment practices. MEPs have voted in favour of a report on Basel III by EPP Group member Othmar Karas. The parliament's economic and monetary affairs committee also discussed measures to enhance member states' surveillance of each other's budgetary and fiscal policies.