Now the final approval by parliament and government leaders of the package is expected to be a formality, although it was not immediately clear what position Britain would take. But even if London would not back the package, the remaining EU members could still force the legislation through by adopting it by qualified majority.
The key part of the package is requiring all banks to gradually increase their capital over the coming years to stabilize the financial sector across the European Union's member states, which together form the world's largest economy.
The legislation is part of global efforts to prevent another shock to the financial system like that prompted by Lehman Bros.' 2008 collapse, when banks were highly leveraged while enjoying low capital requirements. The lack of solid financial cushions meant that many banks were vulnerable, and eventually required taxpayer-funded bailouts to avoid bankruptcy.
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