trending Market Intelligence /marketintelligence/en/news-insights/trending/2krodu_fw27qwr3gif8png2 content esgSubNav
In This List

Report: EU urged to ease proposed holding company rules for foreign-owned banks

Blog

Banking Essentials Newsletter 2021: December Edition

Blog

Automating Credit Risk Surveillance Using Statistical Models

Blog

Post-webinar Q&A: Speed and Scalability – Automation in Credit Risk Modeling

Case Study

A Chinese Bank Takes Steps to Minimize Risks as it Supports International Trade


Report: EU urged to ease proposed holding company rules for foreign-owned banks

Bulgaria, the current president of the Council of the EU, has requested softening proposed regulations that would require large foreign-owned banks to form holding companies for their operations in the bloc, Reuters reported Feb. 22, citing EU documents.

The European Commission is considering requiring certain foreign banks to set up so-called intermediate parent undertakings, pooling each affected lender's operations in the bloc under a single entity, similar to the intermediate holding company regime in force in the U.S.

A draft proposal by the EC suggested enforcing the rule on foreign banks with total assets of at least €30 billion in the EU and on all global systemically important banks, but Bulgaria is seeking to increase the asset threshold to €40 billion and remove the automatic inclusion of G-SIBs.

Bulgaria's proposal would bring the planned EU regulation closer to the U.S.' intermediate holding company regime — which sets a $50 billion asset threshold and does not automatically include G-SIBs — and reduce the number of affected banks that would be subject to the rule, the newswire reported. The EC's draft would have applied to 19 large foreign banks.

The presidency also suggested keeping an eye out for the U.S. Treasury narrowing the scope of its own regulation in the future, Reuters reported.