LONDON—The European Commission is working on its biggest regulatory push on banking since the 2008 financial crash that could curb Britain’s access to the bloc, reported Reuters, citing an internal draft document the news outlet received.
In the 12-page strategy document, EU officials outline provisional financial services plans for the bloc’s executive body, which sets the legislative agenda, and is due to have new people taking over the top jobs this year for a new five-year term. Officials are pulling together ideas that could become more formal policies later in the year, Reuters said.
“The document makes clear that there will be an acceleration of financial regulation, after many years when little has happened following a spate of rule-making after the financial crash,” Reuters said.
It suggests a review of banks’ capital rules by June 2022 that would extend an extra capital buffer imposed on the world’s biggest banks, including Deutsche Bank, to other financial institutions such as settlement houses.
Concentration Charges
The document outlines the possibility of “concentration charges” on banks’ holdings of risky government debt, a step global regulators have so far shied away from, Reuters said.
“That would be a break with the current situation, where banks do not have to set aside capital to cover holdings of their own government’s debt,” Reuters noted.
With Europe in the middle of a money laundering scandal centered on banks, including Danske Bank, the document also suggests a centralized anti-money laundering supervisor and changes to the bloc’s rules to prevent such crimes more binding.
It also flags possible rules to guard against cyber crime.