The EU is due to propose next month a law to implement this and other changes to capital requirements made by Basel.
But instead of accepting Basel’s “big bang” start date in 2019 for the trading book rules, the bloc’s executive European Commission is proposing a phase-in, a draft of the EU law seen by Reuters said.
“Own funds requirements for market risk… will be phased-in,” the document said.
Transitional arrangements will come as a relief to the banking sector.
It is the latest sign of how the EU is willing to deviate from global standards to ease pressure on lenders, some of which, like Monte dei Paschi di Siena (BMPS.MI) and Deutsche Bank (DBKGn.DE), are struggling to convince investors that they hold enough capital.
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