Dec 19 - Government Approves Legislation On Capital Requirements For The Banking Sector
The Government has approved for publication the transposition of the so- called CRD IV package which transposes, via a Regulation and a Directive, the new global standards on bank capital (the Basel III agreement).
The new rules which will apply from 1 January 2014 tackle some of the vulnerabilities shown by the banking institutions during the crisis, namely the insufficient level of capital, both in quantity and in quality, resulting in the need for unprecedented support from national authorities. This new framework is intended to strengthen their capacity to adequately manage the risks linked to their activities, and absorb any losses they may incur in doing business.
The transposition of this complex directive in a short timeframe is indicative of the determination of this Government to keep fully up to date with its EU obligations.
Commenting, Albert Isola, Minister for Financial Services expressed his satisfaction that such an important and complex piece of EU legislation has been transposed by its due date, and within a short period of time, in full consultation with the private sector through their various associations. “I am very grateful to our legal drafting team and those in the private sector who have worked hard to meet what has been a tight timescale in transposing this challenging but important directive”.
