Europe Delays Stricter Banking Rules to Keep ‘Level Playing Field’ With US Rivals

The executive arm of the European Union is separated from the implementation of new banking bases that can serve as a potato bag around the lenders in the region in the middle of the 100 yard race against their counterparts in the United States.

The European Commission announced on Thursday that the so -called basic review of the commercial book, which is the name of technocrats of boring technocratic, if there is ever, will be delayed until one year until 2027. It will set tougher bases on the investment bank trading offices in the region at a time when the United States appears less inclined to impose similar lists of its offices.

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The new rules are part of the 2017 BASEL III banking reforms and were designed in response to the 2008 financial crisis. BASEL III aims to create global standards for the way the banks measure risks and enhance their ability to withstand shocks (also known as the physical separation that deserves an Oscar -winning documentary Matt Damon). Specifically, the basic review of the commercial book will tighten how the banks measure the reserves and keep them against their capital market activities, with the gossip in investment banking services.

Investment banking services, of course, in a rupture profitability on both sides of the Atlantic Ocean, where trading offices spend on volatile stocks even with the tariff policy in the United States in conjunction. JPMorgan Chase and Morgan Stanley recorded record revenues from stock traders in the first quarter, while investment banks increased by 12 % in JPMorgan and 8 % in Morgan Stanley. Deutsche Bank, the largest lender in Germany, recorded his highest quarterly profits before taxes in 14 years in the first quarter, with the records of the commercial unit. Income in the largest bank in France, BNP Paribas, in its last quarter, but the stock office was a bright point with a record result. If the European Union for the implementation of the new rules is now, investment banks in the region can consider the Atlantic Ocean and the vision of an American administration less inclined to follow:

• Last year, the Federal Reserve reduced the third proposed Basel bases after the severe pressure of the banking industry. It was even before the second Trump administration, which promised a business schedule that focuses on standard restrictions, entered power. Last month, Financial times She stated that US officials are planning to decline the bank’s capital requirements in the next few months.

• In January, when Trump entered his post, the UK set its new capital until 2027, when the Bank of England stated that it wanted to see what the United States is doing first, in the interest of “its competitiveness and growth considerations.” The European Commission presented a similar case on Thursday, noting that “concerns related to the International Stadium and the influence on the banks of the European Union are still high.”