BoE and ECB weigh calls to follow US lead on capital relief
European regulators face pressure to exempt sovereign exposures from the leverage ratio
European banks are pressing their home regulators to follow the US Federal Reserve’s lead in easing capital requirements for sovereign debt and central bank exposures.
Sources at four large banks say there are serious discussions taking place with both the Bank of England and the European Central Bank’s Single Supervisory Mechanism (SSM) about the issue.
“The BoE have not agreed to do it, but they’ve kind of heard it and have agreed to take it under consideration,” says a treasurer at one
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