Written question asked by William Bain (Labour) on Thursday, 31 March 2011, in the House of Commons. It was due for an answer on Monday, 4 April 2011. It was answered by Mark Hoban (Conservative) on Tuesday, 5 April 2011 on behalf of the Treasury.

Financial Services: EU Law

Question: To ask the Chancellor of the Exchequer what assessment he has made of the adequacy of the capital requirement rules within the Basel III accord in respect of financial institutions based in the UK.

Answer: The Basel 3 agreement will strengthen the safety of the financial sector by significantly increasing the amount capital banks are required to hold against their risk weighted assets and by introducing a leverage ratio to prevent a dangerous build up of leverage emerging in the financial system. The Basel package represents a credible and crucial set of reforms that will strengthen the resilience of the banking system to the long-run benefit of the economy.Moreover, in order to protect the economic recovery the Basel committee has agreed an extended transition period; with most elements of the package phased in gradually from 2013 to 2019.The UK supports a full and faithful implementation of the Basel 3 agreement in the EU through the Capital Requirements Directive.

Secondary information

Type: Written question
Reference: 51070; 526 c893W
Session: 2010-12
Related items: Financial Services
Monday, 27 June 2011
Written questions
House of Commons
Subjects: Banks EU law
Link: View this Written question on www.publications.parliament.uk