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.