EBA lacks mandate for new CVA push, critics claim
Move to hike counterparty risk capital has corporate treasurers ‘fuming’
The European Banking Authority (EBA) has been accused of seeking to undo "by the back door" a hard-won capital exemption for derivatives trades with corporates.
In November, the regulator issued guidelines that would negate the credit valuation adjustment (CVA) exemption in Europe's Capital Requirements Regulation (CRR), describing them as a "short-term solution" while formal recommendations to reverse the carve-out are being considered by the European Commission (EC). Industry critics claim the
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