The
overall aim is to create a more sophisticated and risk sensitive
approach to capital requirements used by banking regulators, better
reflecting the complexity and diversity of today's financial
markets. This, it is hoped, will ensure a better regulatory
underpinning for the stability of the financial system and a more
efficient use of capital.
The Commission published its proposals – known as the Capital
Requirements Directive, albeit actually in the form of two
Directives – in July. Following discussions with the Commission and
Council of Ministers, the drafts have been extensively amended by
the European Parliament, but are now expected to breeze through the
remaining legislative formalities.
