EU weighs response to US dropping Basel capital floors
European regulators assessing whether US proposal amounts to a “substantial” deviation
European regulators are debating how to respond to the US ditching the Basel III capital floor for banks using internal models.
“Among the several points of attention raised by the new US proposal, the output floor deserves further discussion and analysis to ascertain whether the deviation from Basel is going to be – other than formal – substantial,” says one European Union regulator.
The latest US
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