EU to Offset Bank Capital Impact from Basel Trading Rules
The EU will use a multiplier to offset capital impacts from new Basel trading rules. This helps lenders stay competitive as other financial hubs delay action.
Xurve View
Xurve View
The European Union is moving to mitigate the impact of new global banking reforms on lender capital requirements, specifically targeting rules related to trading operations. According to an EU official familiar with the matter, the bloc intends to neutralise the capital burden stemming from the Fundamental Review of the Trading Book (FRTB), a core component of the Basel III package established after the global financial crisis.
The EU is to introduce a temporary multiplier that neutralises the capital impact on banks that might be affected negatively by the FRTB rules.
