EU rules on banks to be examined

European Union (EU) Commissioner for financial stability Jonathan Hill has said tougher capital rules imposed on banks during the financial crisis, under the Basel III framework, would be examined in order to establish if they are unnecessarily hampering lending.

Hill commented on Wednesday that the bloc's capital requirements law may be changed to make it easier for banks to lend money to companies.

The move follows banks' contention that tougher rules have forced them to shore up safety buffers at the expense of lending. Many banks also had to stop trading securities.

"To what extent have they affected the level of capital held by banks? Are they always proportionate to the risks? What impact are they having on lending to smaller businesses, and infrastructure?" Hill said in a speech in London.

"Could they be simplified or differentiated by risk or size, without compromising the overall objectives?", he said, adding the EU would look into the matter.

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