Archive · 3 Aug 2026
Banking Rulemakers Create Crisis of Their Own
The European Commission announced new rules to make banks safer after the 2008 crash.
These rules say banks must keep more money on hand, which can stop them from lending to businesses.
UK banks say the rules are too strict and hurt their ability to invest.
Some worry that if banks keep too much money, they won’t help the economy grow.
The article says regulators need to balance safety with giving banks enough room to lend and help businesses grow.
European Commission unveiled a Basel III package to strengthen banks.
UK banks argue current capital rules limit investment and lending.
Higher capital ratios could reduce banks’ ability to fund growth.
Regulators fear US deregulation will disadvantage European banks.
The article warns that strict rules may create a new financial crisis.
- Who
- European Commission, Bank of England, UK banks, US regulators
- What
- Revisions to Basel III capital rules
- When
- Recently, in 2023
- Where
- Europe, United Kingdom, United States
- Why
- To prevent a repeat of the 2008 crisis while potentially stifling growth
- Regulatory Body
- European Commission
- Regulation
- Basel III
- Issue
- Capital adequacy requirements
- Impact
- Higher capital ratios may limit lending
- Goal
- Strengthen banking sector and support growth