The Irish Presidency has reached provisional agreement with the European Parliament on new rules that will help make sure that European banks hold enough good quality capital to withstand future economic and financial shocks.
The provisional agreement includes restrictions on bankers' pay to make sure that pay practices do not lead to excessive risk-taking. It also includes new provisions to making European banks more transparent.
Minister Noonan said: "During the financial crisis, European taxpayers had to recapitalise banks. This overhaul of EU banking rules will make sure that banks in the future have enough capital, both in terms of quality and quantity, to withstand shocks. This will ensure that taxpayers across Europe are protected into the future."
"In these negotiations, as Presidency, we have had to balance many different interests: the desire to limit bankers pay while maintaining a competitive European banking sector; the need to provide a single but sufficiently flexible rule book across Europe."
This agreement will have to be approved by EU Member States before it is final. There will also be significant further technical work to complete the details of the legislation.
The Minister said: “I believe that the compromise package that we have reached tonight is well balanced. I will be presenting this package to Finance Ministers when we meet in Brussels next Tuesday and I hope they will endorse it".
Press release
© Irish Presidency
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