The European Parliament today voted to approve a new set of rules governing banking. SP Euro-MP Dennis de Jong described the new regulations, known as the CRD IV package, as ‘full of holes, Swiss cheese legislation. In some parts, such as those governing leverage limits to which the bank must conform, the rules are an improvement on current regulations. There are big gaps, however. The liquidity demands will only be phased in from 2015 and the leverage ratio which specifies how much a bank can lend in relation to its available capital, from 2018.'
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