New bank regulation should facilitate SME finance
At an event in the EP, organised by the Kangaroo Group, Economic Policy Director Gerhard Huemer discussed the up-coming review of the Capital Requirement Regulation for Banks with Klaus Wiedner (DG FISMA Head of Unit), MEP Othmar Karas (Rapporteur) and representatives from the banking sector. The current banking regulations (Basel III) puts unjustified burdens on smaller local banks specifically and makes it difficult for them to lend to small companies. Therefore, Mr Huemer requested a continuation and extension of the SME Supporting Factor, more proportionate rules for smaller banks mainly active on deposit and lending business and a legal framework which deviates from Basel for local credit institutions like credit unions and cooperatives. Finally, he welcomed the fact that the Basel Committee recognised the lower risks of lending to real businesses, but warned once again against additional burdens for small banks.
Contact: Gerhard Huemer