EU Parliament ‘likely’ to allow market risk capital relief

MEPs propose allowing supervisors to temporarily exclude Covid-related backtesting exceptions

European Parliament

Politicians in the European Parliament look set to agree an amendment giving supervisors powers to temporarily lower a multiplier used within the calculation of trading book capital requirements.

If passed into law, the amendment would alleviate an increase in market risk capital requirements that banks have faced from the recent market volatility.

“I think the likelihood is high [the amendment will be in parliament’s final draft],” states Jonás Fernández, the parliamentary rapporteur

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