UK isolated as Germany retains bond volatility filter
Banks in France, Germany, Italy and Spain will all be able to ignore some government bond losses when calculating Tier I capital, but UK institutions will not
UK banks have been isolated by Germany's decision to protect its banks' capital numbers from the effect of government bond volatility – an option granted by Europe's version of Basel III, which has also been taken up by national regulators in France, Ireland, Portugal and Spain. Italy has proposed to follow suit, which would leave the UK as the only one of the five biggest European economies with
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