PARIS (Agefi-Dow Jones)–Good news in sight for global systemically important banks in the eurozone. Global regulators, meeting within the Basel Committee, have agreed to change the treatment of intra-euro area exposures of these institutions, Bloomberg revealed on Monday, citing a working document.
The euro zone would be treated as a single domestic entity, and no longer as a sum of cross-border exposures, which would make it possible to reduce the capital overload of banks present in several countries.
By considering the euro zone as a single banking market, the Basel Committee could also facilitate cross-border consolidations since these would no longer mechanically increase capital requirements.
BNP Paribas, very established in Belgium and Italy, could be the main beneficiary of this reform and see its systemic overload decrease by 0.5 point of solvency ratio.
The changes could be formalized as early as Tuesday, according to the news agency.
-Alexandre Garabedian, L’Agefi ed: ECH
Website: hhttps://www.bloomberg.com/news/articles/2022-05-30/european-banks-led-by-bnp-set-to-benefit-from-basel-rule-change
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May 31, 2022 04:38 ET (08:38 GMT)