Fresh scrutiny for Europe’s SME capital carve-out

FSB’s Knot urges conformity with global standards

Klaas Knot

A controversial European let-off for banks lending to smaller companies may be a waste of time, the Financial Stability Board has concluded.

In a new consultation, the FSB finds Basel III’s tougher post-crisis capital standards have not reduced lending to small and medium-sized enterprises (SMEs), and that Europe’s decision to diverge from those standards appears to have had no clear benefit for borrowers.

Speaking today at a press conference to launch the consultation, Klaas Knot – the FSB