EU Delays New Bank Capital Requirements to 2027

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EU Delays New Bank Capital Requirements to 2027
Photo: Mark Lennihan AP/TT

The announcement comes after negotiations with representatives of EU governments.

The increased capital requirements for trading operations are built on the so-called Basel rules. They were initially supposed to be introduced already this year, but the EU Commission has previously decided to postpone the introduction to 2026 since the USA stopped the introduction of corresponding capital requirements on American banks.

The risk was, according to the EU Commission, that large European banks – such as Deutsche Bank and BNP Paribas – would lose in competitiveness against American competitors if they were forced to adapt to higher capital requirements.

The postponement of the implementation by another year, comes as President Donald Trump's government is expected to focus on deregulation in the financial sector instead of stricter requirements.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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