Foreign banks want level playing field in US Basel III redraft
IHCs say capital charges for op risk and inter-affiliate trades out of line with US-based peers
As the counting unfolds in the presidential election, it’s not just US-headquartered banks that are wondering about the fate of a recently stalled major reform of prudential rules. Foreign banks fear significant implications for their local subsidiaries as well.
The root of the problem, the foreign banks suspect, is that the Basel III endgame proposal in July 2023 was drafted largely with US-headquartered banks in mind. Certain provisions that have a limited impact on domestic bank holding
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