Doom loop reloaded: CRR II goes soft on sovereign debt

EC dilution of Basel liquidity and market risk rules could create new regulatory arbitrage

doom-loop-euros
Legislators must choose between shoring up Europe's bond markets or trying to sever the ‘doom loop'

The European Commission review of the Capital Requirements Regulation – dubbed CRR II by bankers – is not yet one month old. But already, it is being drawn into the tense debate about the trade-off between the health of the banking sector and the health of the European government bond market.

European Commissioner for financial stability Valdis Dombrovskis, unveiling the proposals on November 23, hailed the "substantial package" as a significant step "to reduce risk and support strong banks".

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here