Europe Pushes for Deal on FRTB Bank Capital Rules by Mid-June
The FRTB rules will ultimately force many banks to set aside more capital for their trading operations.
Photographer: Nathan Laine/BloombergThe European Union is seeking to achieve a political deal within less than three months on shielding banks from the full force of new capital rules known as Fundamental Review of the Trading Book, amid concerns about eroding competitiveness.
The EU’s executive arm, the European Commission, is set to present 13 proposals on how to change the FRTB rules at a meeting with the so-called Expert Group on Banking, Payments and Insurance scheduled for Wednesday, according to a document seen by Bloomberg News. The recommendations will include a ‘bank-based multiplier’ that would be designed to neutralize the FRTB impact for three years.