European Parliament poised to defend corporate CVA exemption
The European Parliament is poised to defend a CVA exemption for trades with corporate and sovereign entities, as negotiations enter the final stages
Banks will not have to hold capital against the credit valuation adjustment (CVA) generated by trades with corporate end-users and sovereign entities, under the latest draft version of European proposals on bank capital requirements.
Trilogue negotiations between the European Commission, European Parliament and Council of the European Union on the fourth Capital Requirements Directive (CRD IV) and Capital Requirements Regulation (CRR IV) – which will transpose Basel III into European law – are
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