Commission assesses whether revised bank capital requirements have affected lending

The European Commission is launching a review on how bank lending has been affected by prudential rules introduced in the wake of the financial crisis. The public consultation looks at whether stricter EU rules on capital requirements have, for example, curbed lending to small businesses and financing of infrastructure projects, and whether the rules are in all cases proportionate (see questionnaire here). Jonathan Hill, EU Commissioner for Financial Stability, Financial Services and Capital Markets Union, said: “Bank funding is and will remain central to our economy; whether it is lending to small businesses, or long-term investment in infrastructure. The Capital Requirements Regulation and Directive have restored resilience, stability, and trust in the European banking sector. These are vitally important objectives which the legislation has helped to achieve — but it is right to ask whether the rules have unintended consequences. This is part of our commitment to Better Regulation, and helps us strike the best possible balance between managing risk and enabling growth.” As a follow-up to the consultation, the Commission will publish a feedback report and organise a public hearing on 27 November 2015, paving the way for the Commission’s final report in 2016. A full press release is available in EN, FR and DE