Europe Shields Banks from Tougher Trading Rules for Three Years

Europe’s executive arm has outlined a fourth deal to shield its banks from the full force of new capital rules so major lenders like BNP Paribas and Deutsche Bank won’t be at a disadvantage to rivals in the US.

The European Commission said in a press release on Wednesday it would consult on a draft delegated act that would allow lenders to neutralize the negative capital impact of the FRTB for a period of three years. Bloomberg reported last month that the EU was weighing 13 different amendments, including the ‘bank-based multiplier’ to enable a three year carve out.