Economic and Financial Ministers of the EU reached an agreement on the so-called "CRD 4" package, which amends the EU's rules on capital requirements for banks and investments firms. The negotiations with MEPs will aim for adoption of the package at first reading, if possible by June 2012. For its part, MEPs already stressed that bank capital requirements must be strengthened to make banks more risk-resilient and the risk weighting of loans to small firms must be reduced to facilitate lending to the real economy.

European Ministers at the Economic and Financial Affairs Council meeting reached a general approach on two proposals, the so-called "CRD 4" package amending the EU's rules on capital requirements for banks and investments firms. The agreement is based in a compromise text presented by the Danish presidency presented on 3 of May that sets capital requirements and introduces initial liquidity requirements from 2013, according to national provisions, and a fully calibrated EU liquidity requirement from 2015. To address longer term funding issues, the draft regulation calls on the Commission to submit by 31 December 2016 a report and, if appropriate, a legislative proposal for a stable funding requirement. The draft regulation also provides for the introduction of a leverage ratio from 1 January 2018, if agreed by Council and Parliament on the basis of a report to be presented by the Commission in 2016.

On the other hand, the Economic and Monetary Affairs Committee at the European Parliament approved by unanimity a report on 14 of May which highlighted that bankers' bonuses must not exceed their fixed pay. MEPs also agreed that bank capital requirements must be strengthened to make banks more risk-resilient and the risk weighting of loans to small firms must be reduced to facilitate lending to the real economy. Othmar Karas, the MEP responsible for the report, underlined that the outcome of the vote is a very strong statement by Parliament to the Council that all political parties are determined to go ahead with stabilizing banks and financing growth. He also added that Parliament wants to facilitate SMEs’ access to finance with the new rules.

The two new legislative instruments proposed - a regulation establishing prudential requirements that institutions need to respect and a directive governing access to deposit-taking activities, are aimed at transposing into EU law an international agreement approved by the G-20 in November 2010. The so-called Basel 3 agreement, concluded by the Basel Committee on Banking Supervision, strengthens bank capital requirements, introduces a mandatory capital conservation buffer and a discretionary countercyclical buffer, and foresees a framework for new regulatory requirements on liquidity and leverage.