European Union flags are seen outside the European Commission headquarters in Brussels. -- PHOTO: REUTERS
LONDON - THE European Union will in October unveil laws to ensure banks have the capital reserves to support them through the bad times as it seeks to avoid a repeat of the financial crisis, it was reported on Tuesday.
The Financial Times said a draft report due to be circulated among EU finance ministers in Brussels will say there is a 'strong case' for changing the rules to ensure banks have enough money to keep lending during a downturn.
It said the report recommends accounting reforms and other policy measures to build more resilient capital 'buffers' during the good economic times, and Brussels intends to unveil new legislation to this effect in October. -- AFP
