The European Commission will propose lowering capital requirements for some banks this week to mirror recent US and UK regulatory loosening, saying overlapping rules from different supervisors leave EU banks at a competitive disadvantage and force hi

2026-07-14

The European Commission will propose lowering capital requirements for some banks this week to mirror recent US and UK regulatory loosening, saying overlapping rules from different supervisors leave EU banks at a competitive disadvantage and force higher capital allocation. The change appears in a draft report due Friday that outlines the scope of legislative proposals expected next year. The draft says the Commission will propose removing leverage-related Pillar 2 capital add-ons — discretionary extra requirements set by supervisors such as the ECB — and urges reducing the number and size of other additional capital buffers and improving their design and calibration.