The European Commission published on 20 July 2011 proposals to radically overhaul the legislation governing the supervision of, and the prudential standards to be met by, banking organisations and investment firms. The new legislation takes the form of a revised Directive and an entirely new Regulation that, together, will implement sweeping reforms of the capital and liquidity standards with which banking organisations and investment firms will need to comply. This new legislative package will facilitate the implementation of the Basel III capital and liquidity standards for banking organisations published by the Basel Committee on Banking Supervision in December 2010.

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