Summary Box: Disagreement stalls EU bank rules

AP News
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Posted: May 02, 2012 5:06 PM
Summary Box: Disagreement stalls EU bank rules

CAPITAL RULES: European finance ministers are divided on new rules aimed at protecting banks from future financial crises.

RESERVE HIKES: The so-called Basel III deal reached in 2008 would force banks gradually to increase the amount held in equity and reserves from 2 percent of the risky assets they hold to 7 percent by 2019.

EXTRA BUFFER: The U.K. is leading a group of countries that want to be able to force their own banks to have bigger defenses. France and the European Commission oppose that idea, fearing that such rules could hurt countries without big banking systems.