Stricter rules for European banks unveiled in wake of crisis

The European Commission presented plans for tougher bank capital rules on Wednesday (1 October), in order to reduce risk exposure as a way to make the financial system stronger in the wake of the ongoing banking crisis.

Under the proposed measures, banks would be restricted in lending beyond a certain limit to one party, and 'colleges of supervisors' would be put in place for those banking groups that operate in several EU states.

Additionally, sellers of hazardous loans would hav...