EU Says Banks Can't Drop High-Quality Capital Levels

Law360, New York (July 22, 2013, 2:51 PM EDT) -- The European Banking Authority said on Monday that it's requiring banks to extend certain high-quality capital buffers from a 2011 stress test, asking regulators to keep tabs on capital levels and for the banks to produce recovery plans should they drop below set nominal floors.

The European Union watchdog's recommendation comes as several countries begin to implement international banking rules that lock in capital levels to protect against volatile financial markets and restore confidence. The EBA said banks shouldn't allow base capital levels to drop below...
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