Implementation of Basel III and liquidity rules is subject to interpretation by national bank regulators. Disclosure is not subject to this interpretation as it applies equally everywhere.
Seven European Union finance ministers have written to the EU executive saying its plan for implementing Basel III capital and liquidity rules for banks were too soft, a German newspaper reported on Friday.
Ministers, including those from Britain, Spain and Sweden, also said the European Commission's proposal for a binding, unified set of rules crimped an individual country's ability to demand higher capital quotas from banks, the Financial Times Deutschland reported, citing the letter.
The proposal also curtailed national financial watchdogs' ability to take account of differences in banking systems.
The plans as they now stand would "damage European financial stability and the EU's credibility in this area," the paper quoted the letter as saying.
International financial regulators have hammered out the Basel III accord to tighten rules on banks to avoid a repeat of the financial crisis. The deal was endorsed by world leaders last November and will phase in tougher bank capital and liquidity requirements over six years from 2013.
EU financial services chief Michel Barnier will publish a draft EU law in July based on the global agreement.
The paper said Germany did not sign the letter and appeared to have been successful in its demand that joint-stock and non-joint-stock banks be treated the same under the new rules.