Big banks in the U.K., Switzerland and Japan are protesting against EU proposals to force lenders to have more capital and liquidity in the bloc so their subsidiaries would be more resilient in a crisis, the Financial Times reported, citing a letter from banks to EU officials.
The letter pertains to so-called intermediate parent undertakings.
"If the EU businesses of third-country groups suffer increased costs entailed by the IPU requirement, such groups may well decide to exit such businesses, reducing choice for EU consumers of financial services and reducing competition," the banks warned.
The EU proposal has faced strong opposition from the U.K. as well as Luxembourg, while other governments have called on Brussels to proceed with "impact assessments" before implementing the measures.
The measures are part of the larger EU regulatory framework that Estonia, which holds the current EU rotating presidency, was hoping to broker a deal by the end of 2017, the FT reported. Divisions between countries have complicated the issue.