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The European Union on Tuesday approved a plan to implement internationally agreed banking reforms aimed at preventing a repeat of the 2008 financial crisis.\n <\/p>\n

The European Commission proposed a banking law in October 2021, but after the collapse of creditors in the US that caused market turmoil earlier this year, the focus has shifted to banks.<\/p>\n

The bill represents the EU’s interpretation of the Basel III reforms in line with international standards on how banks assess credit and market risks.<\/p>\n

This includes the requirement that banks have sufficient capital and liquidity.<\/p>\n

The rules will apply from 1 January 2025, two years after the 2023 deadline agreed to under the reforms.<\/p>\n

On Tuesday, negotiators from the European Council, which represents 27 member states, and the European Parliament tentatively approved the rules.<\/p>\n

The bill also requires banks to report their exposure to crypto assets, including cryptocurrencies such as bitcoin and ethereum, and provide greater transparency about sustainability risks, including funding for fossil fuel projects.<\/p>\n

The agreement also stipulates that managers must be “qualified and suitable” as part of the individual’s suitability assessment.<\/p>\n

The banking turmoil began in March with the collapse of Silvergate, Silicon Valley and Signature, and market fears led Swiss bank UBS to buy former rival Credit Suisse.<\/p>\n

Source: AFP<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The European Union on Tuesday approved a plan to implement internationally agreed banking reforms aimed at preventing a repeat of the 2008 financial crisis. The European Commission proposed a banking law in October 2021, but after the collapse of creditors in the US that caused market turmoil earlier this year, the focus has shifted to […]<\/p>\n","protected":false},"author":3,"featured_media":11360,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[1664,3686,2912,13320],"class_list":["post-12158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-agreement","tag-banks","tag-rules","tag-tightens"],"yoast_head":"\n