US Is Tougher Than EU on Big Banks’ Capital Rules, ECB Says

The US is tougher in imposing capital requirements on large banks than the European Union, staff at the European Central Bank said, pushing back against an argument the industry uses to call for weaker regulations in the region.

US regulators take a stricter approach to buffers for the largest banks and place limits on lenders using their own risk calculations, the ECB staff said in a paper published on Monday. New rules proposed in March are expected to slightly reduce requirements for the biggest US banks, yet they won’t reverse the comparison, according to the ECB staff.