EBA proposes simplification to capital framework without weakening resilience
Overview of EBA's Proposed Changes to Bank Capital Rules
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Background and Context
LONDON/MADRID, June 16 (Reuters) - The European Banking Authority on Tuesday set out what it called "targeted" and "balanced" proposals to simplify bank capital rules without weakening resilience.
Global Regulatory Environment
Regulators globally weigh easing the burden on banks to support competitiveness and economic growth, although European banks had been primed not to expect major changes after the European Central Bank earlier proposed streamlining rules without easing overall capital requirements.
Details of the EBA Report
In a report, the EBA, which sets regulatory standards for EU banks, outlined options for limited changes to how bank capital is structured, including merging some buffers and streamlining leverage ratio requirements, without changing the composition of capital.
Future Steps and Legislative Outlook
The European Commission is due to publish an assessment of bank competitiveness in July, with legislative proposals likely to follow in 2027.
Industry Response
Europe's banks last week urged simpler rules to help banks finance growth after saying that Europe faced a widening €1.4 trillion ($1.62 trillion) annual investment gap.
(Reporting by Phoebe Seers in London and Jesús Aguado in Madrid;Editing by Tomasz Janowski)
