EBA to address double-counting caused by new capital floor
Existing EU capital add-ons for model risk would duplicate new Basel floor on internal models
The European Union’s banking watchdog is preparing to release an opinion document explaining how supervisors should address the potential overlap between an existing discretionary capital add-on they can impose on banks, and a new mandatory capital floor that has come into force this year. The opinion will serve as a stopgap measure until the European Banking Authority is able to develop more
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