European banks are facing the threat of having to reveal their taxes and profits on a country-by-country basis in the latest twist to the EU negotiations over rules to make banks safer.
The European parliament is pressing for the tougher disclosure regime along with a demand for strict curbs on bankers’ bonuses as part of the law implementing the Basel III international accord.
EU member states are largely resisting the initiative, introduced into the overhaul of bank capital rules.
Under the proposal, Barclays, for instance, would be required to publish its profits and taxes in every national jurisdiction – from the UK to Zimbabwe.
Banks are worried that the requirements – which would upend their bookkeeping practices and leave them vulnerable to public pressure over taxes – could be passed in the final haggling over the law.
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