EU urged to pass permanent market risk capital relief
Council agrees temporary changes, but ECB’s Enria wants legislators to trust supervisors
Banks are expecting EU legislators to pass a legal amendment that will give supervisors the power to temporarily lower a multiplier used in the calculation of trading book capital requirements. But there is growing pressure to make this discretion for supervisors permanent.
Three sources say the Council of the EU has agreed to the amendment put forward by members of the European Parliament (MEPs) in response to the extreme market volatility caused by the Covid-19 crisis. The rule change, which
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