Newsletter Nov 2007: EU supervisors want revised large exposure rules

LONDON – European supervisors are proposing that the current EU regulatory regime for banks’ large exposures be amended, but not scrapped or extensively rewritten. The current limit-based ‘back-stop’ regime will, under this proposal, be revised to ensure a more convergent application of rules and reporting requirements across the EU, and greater consistency with the Capital Requirements Directive (CRD), Europe’s version of the Basel II capital framework.