EU to tighten banking rules

More power to monitor banks and to impose sanctions :

Brussels: The European Commission has proposed giving European Union banking supervisors more power to monitor banks and to impose sanctions were high risks are detected. The new set of measures also require banks to raise further capital to withstand future risks that could lead to a new financial crisis on their own, instead of relying on taxpayer-funded bailout, AFP reported.

Therefore, European banks will have to raise a combined EUR 460 billion by 2019.”We cannot let such a crisis (the global financial crisis in 2008) occur again and we cannot allow the actions of a few in the financial world to jeopardize our prosperity,” European Commissioner for Internal Market and Services Michel Barnier said.

Many banks, within the 27-nation bloc, were bailed out during the crisis.The banking supervisors will therefore have the power to impose fines worth up to 10 percent of the bank’s annual turnover, or temporarily suspend the activities of certain board members, if a bank would fail to obey the new measures. Thursday,Press TV