UPDATE 1-EU strikes political deal on bank reform, few technical details remain
Some technical details of the deal now need to be finalised by the end of the year, with talks due later on Tuesday with the European Parliament, Austrian Finance Minister Hartwig Loeger said at the end of a ministerial meeting in Brussels.
The agreement came after two years of negotiations and adapts EU banking rules to agreements reached at global level with United States and Japanese regulators, although the draft agreed text includes tweaks to global standards and a large number of waivers for banks and EU states.
"About 90 percent of the text is agreed but there are all kinds of minor issues that need to be tidied up," an EU official said.
In a public session, several ministers raised doubts about tweaks to the rules made by parliamentarians but said they were confident the final text could address their concerns.
Under the reform, European banks will have to abide by a new set of requirements aimed at keeping their lending in check and ensuring they have stable funding sources.
EU lenders will be required to hold a 3 percent leverage ratio to increase their financial stability.
Banks will also have to meet a Net Stable Funding Ratio (NSFR) aimed at limiting excessive reliance on the type of short-term funding that was among the causes of the global financial crisis. (Reporting by Francesco Guarascio; Editing by Alison Williams and Alexander Smith)
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