EU Set to Delay New Bank Capital Rules

The European Commission is preparing legislation to temporarily offset increases in bank capital requirements from the Fundamental Review of the Trading Book (FRTB), aiming to prevent EU lenders from falling behind competitors in the US and UK. Although the plan caters to lenders and politicians’ interest in reducing regulatory burdens and ensuring EU banks can stay competitive, there are concerns that it could weaken the post‑crisis safeguards designed to protect markets from excessive risk‑taking.

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