Parallel lines: EU begins fight over Basel output floor

Leaked plan to exclude buffers from floor would please EU banks, could anger Basel and US

The EBA, banking watchdog to the European Union, warned more than a year ago that possible reinterpretations of a capital floor devised by the Basel Committee on Banking Supervision would amount to a “circumvention” of the agreement the bloc signed up to.

That warning may go ignored by Europe’s legislators.

“We have seen different interpretations of possible output floors out there, and depending on how you interpret the output floor, it will be more or less binding to banks,” says a senior

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