This compares with Basel minimum of 7 percent

canadian goose jacket EU seeks elusive deal on bank capital

cheap Canada Goose BRUSSELS (Reuters) European Union finance ministers struggled on Wednesday to reach a deal on forcing banks to set aside more capital to cushion future losses, with Spain saying the bloc had to dispel doubts about the strength of its canada goose clearance sale lenders.

canada goose The EU 27 members are divided over how much capital banks should hold in future to protect uk canada goose outlet themselves against the kind of losses which have brought down dozens of lenders in Europe and the United States, often requiring bailouts funded by taxpayers.

Canada Goose Outlet Spain, whose banks have suffered huge losses Canada Goose Coats On Sale inflicted by a property crash that is continuing unabated, said new rules were vital for handling future turmoil.

this time of financial crisis, we need buy canada goose jacket cheap to clear up all doubts about the quality of European banks, Economy Minister Luis de Guindos said. need to guarantee a level of quality canada goose store capital that is enough to face future crises, he told reporters as cheap canada goose uk he arrived at the talks.

Many of the over 8,300 banks and financial institutions in Europe are struggling, and Standard Poor cut the credit rating this week of 11 banks in Spain, which has sunk into its second canada goose black friday sale recession in just over two years.

canada goose store Madrid has told Spanish banks to raise almost 54 billion euros Canada Goose Online in capital this year on top of a sharp rise in provisions against losses since the property bubble burst in 2008.

buy canada goose jacket German Finance Minister Wolfgang Schaeuble warned reporters not to expect a canada goose uk outlet quick deal about future capital rules at the Brussels talks, called in the hope of achieving a breakthrough after some countries demanded changes to a pan European formula.

canada goose black friday sale don think canada goose coats on sale we will come to a conclusion today, Canada Goose Outlet he said before the meeting, adding that the issue was complex.

canada goose coats on sale we have too little capital, then the banks carry risks for the financial system. In order to stabilize the financial system, which is something that we are successfully working on, the banks must have more capital.

Denmark, canada goose sale holder of the bloc six month rotating presidency, has stepped up efforts to find a deal and Schaeuble said he believed agreement was possible in the coming months.

canada goose clearance sale Their aim is to translate the higher capital standards set by the Basel Committee of regulators into EU law, turning it into reality for banks by the start of next year.

The Danes want to achieve a consensus and strike an accord with the European Parliament by the end canada goose uk shop of June.

canada goose clearance One compromise would be to allow a margin of flexibility so countries that want can require their Canada Goose sale banks to increase their capital buffers up to a certain limit, perhaps as much as 10 or 12 percent of risky assets for up to two years. This compares with Basel minimum of 7 percent.

canada goose coats Yet there is a split over whether the green light is needed from the European Commission, the EU executive arm, before a country can require capital levels above the Basel minimum.

The European Central Bank cautioned against granting individual countries too much flexibility in imposing the rules. Vice President Vitor Constancio warned ministers this could create a among countries

FAILURE Banks with higher than average capital, such as Switzerland UBS AG, can look more attractive for deposits because they are seen as offering greater security.

buy canada goose jacket cheap But the capital question has been divisive and Britain finance uk canada goose minister George Osborne said the EU risked failing to implement the rules properly because too many countries wanted concessions for Canada Goose online their own banks.

we walk from this table with 27 countries having got a little bit of a something. then actually we will have completely failed, Osborne told buy canada goose jacket ministers in a part of the meeting aired publicly. won be just be a political failure, it could be a very, very serious economic failure.

Canada Goose Jackets Handing more power to Brussels is anathema to Britain, which is fighting to maintain its autonomy in policing the City of London, Europe financial capital.

Canada Goose sale Europe capital canada goose uk black friday regime, when decided, will be closely studied in the United States and may influence how policymakers there interpret the Basel standards, while investors are eager to see the EU repair its vulnerable banking sector.

having a European banking union. on common capital requirements. makes it canada goose factory sale very difficult for the euro project to work, said Eric Stein, a portfolio manager at Eaton Vance in Boston that invests in European assets.

nothing happens, it will be a continued area for stress in Europe and canadian goose jacket send a very negative sign.

At the heart of the dispute is the freedom EU states have to enforce capital rules. Britain and Sweden, canada goose which have two of the largest banking sectors in canada goose coats Europe relative to their economies, want the freedom to take extra steps to make banks safer.

Canada Goose online London and Stockholm argue they need to protect the interests of taxpayers who could be called on Canada Goose Jackets to bail banks canada goose clearance out if they face collapse.

Canada Goose Parka France wants capital standards to be more uniform across the EU and is worried that international banks based in London could cut lending elsewhere in Europe if Britain forces them to raise their capital yet further.

Some diplomats suspect the dispute is fuelled by concern that deposits and other business might flow to British cheap Canada Goose banks were they to be better capitalized than French and German rivals and thus safer in the eyes of investors Canada Goose Parka.

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