国际英语新闻：EU to tighten capital requirements for banks

BRUSSELS, Feb. 26 (Xinhua) -- The European Union (EU) is considering tightening rules concerning capital requirements for banks and investment firms to avoid future financial crisis, and stakeholders are being consulted on the possible impact of the changes.

Among the proposed changes to Capital Requirements Directive are asking banks and investment firms to set aside more money to offset risks brought by credit derivatives, raising the quality and transparency of their capital bases, and adopting countercyclical measures to dampen economic and financial shocks, the European Commission said in a statement on Friday.

The Commission also proposed to adopt appropriate measure to deal with the risk posed by systemically important financial institutions. "It is vital that we further strengthen the solidity of financial institutions and put in place new rules in order to be better prepared for the crises of tomorrow," Internal Market and Services Commissioner Michel Barnier said in the statement.

The Commission said that the proposed changes reflected commitments made by G20 leaders at summits in London and Pittsburgh in 2009, at both of which strengthening the regulation of financial institutions was the main topic.

Capital Requirements Directive, which was adopted in 2006, stipulates how much of their own financial resources banks and investment firms must have in order to cover their risks and protect depositors.

The directive has been revised twice in the past two years in order to strengthen soundness of the banking sector and the financial system.

The Commission has asked all interested stakeholders to reply to the consultation by April 16, indicating the impact the changes might have on their activities. It will put forward a legislative proposal concerning the changes in the second half of this year.