Under the terms of the agreement, which has not yet been published, institutions will be required to disclose details of profits made, taxes paid and subsidies received country by country, as well as turnover and number of employees. In a press release published on 28 February it was announced that this information should be reported to the Commission from 2014 and made fully public from 2015.
The agreement came as part of ongoing discussion on the Capital Requirements Directive (CRD) which initially did not have transparency as part of its scope. Banks were lobbying to have transparency included within the existing EU Transparency Directive which is expected to have its first EU plenary session in May 2013. There was significant pressure from MEPs to bring transparency within the CRD together with a limit on bankers bonuses.
This agreement has still to be approved by member states and the European Parliament plenary, in which a vote is expected at the 15-18 April session. The European Commission have been given the remit to alter these proposals if they are deemed to be detrimental to competitiveness. Once approved, member states would need to include the rules in their national laws by 1 January 2014.
It is unclear, at present, as to how these proposals will interact with the ongoing EU Transparency Directive and if banks will be excluded from the additional requirements of that directive.