Estonia wants to impose stricter requirements on banks 30.04.2012, 11:47
Estonia and Sweden are promoting the plan to make it possible for member states to impose stricter capital requirements for banks than the general European banking requirements, writes Äripäev.
Denmark that is holding the presidency for the European Union has already called a meeting of finance minister of EU member states to discuss the new capital regulation framework.
Kilvar Kessler, board member of the Financial Supervisory Inspectorate, said that Estonia has imposed even stricter requirements on its banks than Sweden because of experience.
“We don’t want to face a situation where some local financial institution becomes insolvent and all taxpayers must bail it out. Risks have not disappeared from the business environment,” said Kilvar, battling claims that Estonia was placing too high additional burden on its economy.
Kilvar added that the capital regulation was having its effect on the economy, but it was hard to say whether it is positive or negative.
“If you look at the economic figures from last year, one can say that Estonia did relatively well. If banks had given more loans, how knows what would have been the case then,” he added.