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ECB study points out unevenness in EU capital rules

Current prudential framework generates “unwarranted heterogeneity” in banking union, authors argue

Regulation

The current framework for calibrating prudential requirements in the European Union is leading to uneven treatment across member jurisdictions, an article in the European Central Bank’s latest macro-prudential bulletin argues.

The article, published on August 5, says the EU’s framework for evaluating lenders’ systemic importance has led to “unwarranted heterogeneity” in capital buffer calculations across the banking union.

Under the framework, the European Banking Authority issues guidelines for

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