Report says Basel II will cost banks 20-30bn euros

Applying capital requirements under a new accord drafted by the Basel committee should cost European banks 20-30 billion euros between 2002 and 2006, a study prepared for the European Commission has estimated.

But the report from the Pricewaterhouse Coopers research group, presented on Wednesday 2 June to a meeting here of European Union finance ministers, said the regulations would have either a neutral or positive impact on banking clients.

It said major investment banks in the European Unio