Delays loom for bank reforms in eurozone
Mark Leftly is political correspondent at The Independent on Sunday and associate business editor across the Independent titles. He writes a weekly column, Parliamentary Business, published on a Wednesday, that covers politics and the City. He is a multi-award winning reporter and was named Press Gazette's business magazine journalist of the year prior to joining The Independent on Sunday.
Monday 22 October 2012
The European Commission's attempt to overhaul the bloc's banking system is set to be delayed by a legislative logjam in Brussels.
Jose Manuel Barroso, Commission president, right, has planned a number of directives and regulations to "make sure that banks in the euro area stick to sound financial practices" in the wake of the eurozone crisis.
On Friday, a path to banking union was agreed by European leaders. A banking supervisor is to be set up next year. But many of the necessary reforms are tied up in measures being debated in the European Parliament's committees. Politicians in Brussels say that there will not be time for all the plans to be scrutinised by the new year, which is the target deadline for many to be settled. A source close to negotiations said that there would be at least a six-month delay.
The proposals include so-called "living wills" so that failed banks could be wound down in an orderly manner; a deposit guarantee scheme; and the implementation of the Basel III rules, forcing banks to hold more capital.
Also delayed is a directive forcing insurers to hold more money so that they are not bankrupted by natural disasters.
A banking expert said: "Clearly there is a very strong political will to get all of this done as soon as possible. On the other hand, some of this is controversial and that will push everything into next year."
Peter Skinner, a Labour MEP on the Economic and Monetary Affairs Committee, said: "Banking union is going to happen and is probably a good thing, but we have to look at it properly to what effects it has in terms of the single market."
- 1 Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
- 2 Porn block in India: hundreds of sexual websites banned, internet outraged
- 3 Natalia Molchanova: World's most successful free-diver missing and feared dead after disappearing in Mediterranean
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Gamers confess the worst things they've done in The Sims
Jackie Chan in second place in Forbes' Highest Paid Actors list after magazine includes actors working outside US movie industry
Malaysia issues arrest warrant for Gordon Brown’s sister-in-law after she publishes stories on leader Najib Razak's financial affairs
Natalia Molchanova: World's most successful free-diver missing and feared dead after disappearing in Mediterranean
Dutch King Willem-Alexander declares the end of the welfare state
Pizza Express protests: these restaurants charge staff for tips paid by card
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Jeremy Corbyn: Tony Blair could face war crimes trial over 'illegal Iraq invasion'
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
iJobs Money & Business
£35 - 38k + Benefits & Bonus: Guru Careers: We are seeking an Account Manager ...
£20000 - £25000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£50 - 80k: Guru Careers: We are seeking an Associate Director for the Markets ...
£60 - 100k: Guru Careers: Our client is looking for an Associate Director of S...