Non-banks disappointed by Europe’s CRR escape hatch

Proposed alternative prudential regime still doesn’t reflect the true risks of non-banks, say critics

Investment firms are worried about jumping from the frying pan into the fire if a new prudential framework for non-banks, currently proposed by European Union regulators, is put in place.

One of the quirks of existing EU capital requirements for banks is that they will be applied to any firms regulated under the second Markets in Financial Instruments Directive (Mifid II) once it goes live in January 2018. The European Banking Authority (EBA) is engineering a completely new alternative

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: