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Tough New Rules For Europe's Banks

By courtesy of Ulrika Lomas

European Union (EU) banks will be made to reveal details of their tax affairs as part of a legislative package voted in by the European Parliament.
The rules will require all 8,200 EU banks to disclose profits made, taxes paid and subsidies received on a country by country basis. Turnover and the number of staff employed will also need to be divulged.

The changes will apply from January 1, 2014, when banks will begin reporting these figures to the European Commission. The details will be made fully public from 2015.

The legislation also places a cap on bankers' bonuses, establishes new capital requirements and introduces a set of prudential rules. It must now be formally approved by the Council of Ministers.

A separate agreement on a single banking supervisor was brokered by the Irish Presidency this week, described as a major step towards banking union by Irish Finance Minister Michael Noonan. A political declaration reaffirming member states' commitment to the proposed union accompanied the deal.