NEWS: The EU has reached new capital rules and large banks have received more favorabl
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The European Union Finance Secretary, on Friday, reached an agreement on the reform of the banking capital, which is an important step towards strengthening the financial stability of the euro zone, as well as an approach to a bank bailout fund agreement in June.
After 18 months, the 28 EU government has reached the agreement on how to apply the new rules of global banking capital after the 2007-2009 year global financial crisis and rectifying financial regulation.
This paved the way for another breakthrough in the eurozone bank rescue fund. Finance ministers promised to support the fund on Friday, but the decision will not be made until June.
These two measures complement each other because the implementation of the banking capital regulations is expected to reduce bank risks. The euro zone countries will jointly support the banking rescue mechanism, which is the form of a single disposal Fund (SRF), and further realizes the risk of sharing.
German finance minister Scholz (Olaf Scholz) said after the meeting that the agreement is a good start and will inspire more progress in this area.