The proposals to change the banking rules may be useful for strengthening market confidence and the ability of banks to withstand losses. However, the proposed measures will only come into effect in about two year's time - too late to address the current financial crisis

The legislative process set down in the Treaty is such that it is not possible for the Commission's proposals to solve the crisis. The proposals are intended to strengthen the framework for the future. In terms of immediate reaction, the ECB and Member States responded promptly by addressing problems of liquidity or solvency, and they are continuing to do so. For the medium term, the Commission will continue to strengthen the regulatory framework to prevent the recurrence of such crises.