SME Chamber President meets MDB Officials
22 April 2024
Malta Chamber of SMEs President Mr Paul Abela met MDB Chairman Leo Brincat and CEO...
Legislation on capital requirements for the banking sector to enter into force
20 July 2013
On 17 July, the so-called
CRD IV package which transposes -via a Regulation and a Directive- the new
global standards on bank capital (the Basel III agreement) into EU law will
enter into force. The new rules which will apply from 1 January 2014 tackle
some of the vulnerabilities shown by the banking institutions during the
crisis, namely the insufficient level of capital, both in quantity and in
quality, resulting in the need for unprecedented support from national
authorities.
They set stronger prudential requirements for banks, requiring
them to keep sufficient capital reserves and liquidity. This new framework will
make EU banks more solid and will strengthen their capacity to adequately
manage the risks linked to their activities, and absorb any losses they may
incur in doing business.
them to keep sufficient capital reserves and liquidity. This new framework will
make EU banks more solid and will strengthen their capacity to adequately
manage the risks linked to their activities, and absorb any losses they may
incur in doing business.
