New banking rules threat to drain corporate finance and slow down the green transition
The Confederation of Finnish Industries (EK) is disappointed in the European Commission’s proposed review of EU banking rules in order to finalise the implementation of the Basel III agreement in the EU. These new rules seek to ensure that EU banks become more resilient to potential future economic shocks.
The proposal will most likely increase the capital requirements of European banks. It can be estimated that this will affect the ability of banks to finance European businesses.
EK supports the European Commission’s efforts to implement the standards in a way that reflects the specificities of the EU economy and banking sector. This is important to ensure while the proposal is negotiated by the European Parliament and the Council.
We warmly welcome maintaining the SME Supporting Factor. It reduces the cost of lending to smaller and medium-sized companies.
It is of the essence to ensure that the package does not cause any unnecessary delays in investments urgently needed to deliver the green transition objectives.