EU ministers say banks' capital rules are "pro-cyclical"

07/8/2009 | Wall Street Journal, The

Finance ministers from across the EU took issue with banks' capital rules that were established in the Basel II Accord, saying the framework is "pro-cyclical". The policymakers said regulations need to help financial markets avoid boom-and-bust cycles. While German Finance Minister Peer Steinbruck lobbied to encourage banks to boost lending by temporarily suspending the Basel II rules, most ministers opposed the idea.

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