EU capital revamp paves way for corporate CVA charge

Draft directive offers national regulators power to override controversial exemption

Risk 0517 Lead story, article 104, corporates
The rope is taut, the anvil is in position
Andy Watt, nbillustration.co.uk

The duelling adversaries in children’s cartoons never give up, and their attacks become ever-more creative. If the frying-pan ambush fails, then the dangling anvil will surely do the trick. Europe’s regulators are hoping this kind of approach will now bring them a final, decisive victory in their repeated attempts to wipe out a controversial capital exemption enjoyed by the region’s non-financial companies.

So far, corporates have been one step ahead. Because the Pillar 1 capital exemption for

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