Banks in EU May Face 3% Capital Surcharges Under Basel Agreement
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Bank regulators in the European Union may win powers to impose capital surcharges of as much as 3 percent on lenders’ activities at home and abroad as part of a compromise plan for applying Basel rules.
Denmark, which holds the EU’s rotating presidency, made the proposal to resolve a clash over how much freedom national authorities should have to impose capital rules on their banks that exceed a minimum standard, a Danish presidency official told reporters in Brussels today. Finance ministers will seek to thrash out a deal on the rules at a May 2 meeting.