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Outgoing EC commissioner proposes lower capital charges for loans to small firms

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Outgoing EC commissioner proposes lower capital charges for loans to small firms

Banks would not need to hold so much capital against loansto small companies under a new proposal by Europe's commissioner for financialservices.

In 2014, capital charges were reduced for loans to smallerfirms of up to €1.5 million. This ceiling would be scrapped.

"There will be no upper limit, and a capital chargereduction of 15% above €1.5 million," said Jonathan Hill, speaking inBrussels on July 12.

He also proposed that trade finance loans could be exemptedfrom calculations for banks' leverage ratios.