EU falling short on bank capital rules, warns regulator

The EU is failing to meet international rules to make bank lending safer, according to the Basel Committee on Banking Supervision, an international body created in 1974 to come up with worldwide standards on keeping banks in check.

The committee gave the EU a clean bill of health on most of a draft law on capital requirements for banks (CRD IV), classifying 12 out of 14 components of the proposals as "compliant" or "largely compliant" with the Basel rules. However, it expressed concerns...