EU banks fear loss of NSFR relief for repo trades
European Commission must decide by next June; other jurisdictions adopted softer calibration
Banks in the European Union fear regulators will abandon a temporary relief applied to liquidity rules on repo assets. This could potentially put dealers at a disadvantage compared with peers in the UK and the US, which look set to benefit from a permanently softer calibration.
“Reversing is not the most appropriate word, because it would be innovation,” says a regulatory expert at a large EU bank. “It would not be going back to something that already existed, it would be going to levels that are
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