With the exception of the United Kingdom, the Permanent Representatives Committee of the Council approved the agreement already reached by the European Parliament and the Council on the "CRD 4" package amending the EU's rules on capital requirements for banks and investment firms.

The compromise text that contains the proposals set out to amend and replace existing capital requirement directives by two new legislative instruments: a regulation establishing prudential requirements that institutions need to respect, and a directive governing access to deposit-taking activities, was approved by the Permanent Representatives Committee of the Council. If the Parliament approves the texts as agreed, the Council will also approve them without further discussion. Council endorsed the CRD 4 package amending the EU's rules on capital requirements for banks and investment firms in the beginning of March 2013.

Among other things, the regulation will require banks and investment firms to hold common equity tier 1 (CET 1) capital of 4.5% of risk weighted assets (until December 2014 between 4% to 4.5%), up from 2% applicable under current rules. The total capital requirement, which includes tier 1 and tier 2 capital, remains unchanged at 8% of risk weighted assets. The regulation also will introduce EU liquidity requirements from 2015, after an initial observation period. The Directive will introduce additional requirements for a capital conservation buffer of CET 1 capital of 2.5% of total risk exposure, identical for all banks in the EU, and an institution-specific countercyclical capital buffer of up to 2.5%. Bonuses will be capped at a ratio of 1:1 fixed to variable remuneration, i.e. no greater than equal to fixed salary.

Both instruments, the Directive and the Regulation, are aimed at transposing into EU law an international agreement endorsed by the G20 in November 2010. The "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, as well as additional capital surcharges for systemically important institutions.