According to European Banking Federation's (EBF) Head, Basel III banking policy requires some amendments. Without making the changes, the regulation can decline the economic growth in Europe.

Unicredit's Chief Executive Alessandro Profumo said that EBF members are worried regarding the banks' lending policy.

New capital rules dubbed as Basel III are made in order to deal with financial problems. According to regulatory authorities, banks require at least a minimum core Tier 1 capital ratio of 7 to 9%, which will also include capital conservation buffer.

The banks should have a minimum base core Tier 1 capital ratio of 4.5 to 6% with an extra capital conservation buffer of 2 to 3%. Those banks that will not be able to keep an upper buffer would have to control payouts like bonuses and dividends.

Top banking officials are worried that having stringent global capital rules for banks will adversely affect the lending and cut growth all over Europe.

A meeting will be held on Sunday in the Swiss town of Basel, and the delegates will discuss the new bank capital policy and liquidity requirements.

It is expected that representatives of 20 countries will take up the new set of standards at the meeting to be held in the month of November.