the European Union The Financial Times is preparing to make it easier for banks to move money between EU member states I mentioned Thursday (June 18), citing a leaked report from European Commission Which is scheduled to be released in July.
This is one of several measures the EU intends to take to improve the competitiveness of the banking sector, whose performance lags behind that of banks in the United States, according to the report.
The EU also plans to grant banks capital exemptions on mortgages and loans to unrated companies, reform the structure of bank deposit insurance frameworks, review capital requirements for investment firms, and consider halting or reducing the application of Basel III international banking rules to small lenders, the report said.
The report outlines draft legislation that could be introduced next year, according to the report.
EU banks have long argued that requirements imposed on them by supervisors, decision-making authorities and national regulators often overlap and reduce banks’ ability to lend, according to the report.
The report said that banks had sought reductions in capital requirements, but the changes outlined in the European Commission report fell short of what the banks had sought.
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Reuters too I mentioned on the leaked post, saying that banking regulators not only in the EU but around the world are looking for ways to reduce regulatory burdens on banks to support their growth.
These moves were partly driven by the need to respond to changes made by US regulators, which were more aggressive, according to the report.
Reuters I mentioned Tuesday (June 16) that European Banking Authority He said that limited changes in how banks’ capital is structured could support the banking sector’s competitiveness and economic growth without weakening the sector’s resilience.
It was reported on Tuesday that while Europe Banking regulators Following the release of updates to lenders’ capital rules, the changes represent a rejection of the banking industry’s calls for major changes to EU capital requirements.
The European Banking Authority’s report is designed to clarify what many lenders say are overly complex and duplicative capital requirements, according to the report.
