Following criticism by Scandinavia’s financial industry of the European Banking Authority’s proposal for reporting requirement for capital buffers, backed by the European Banking Federation in Brussels, the European Commission decided to delay the scheduled plans for one month. Bankers’ associations in Denmark, Sweden, Norway and Finland are urging the Commission to reject this set of rules that would determine how banks calculate their capital ratios and carefully consider the fact that it would overstate the risks associated with their mortgage assets. This is particularly so in the case of Scandinavian bank groups who argue that they have already taken more steps than most to strengthen its financial industry against the risk of losses. The Commission already had the opportunity to say that “it will assess this strictly on the basis of the relevant articles in the Regulation before proceeding to the formal adoption of the standard”. The Commission’s decision is now expected by the end November: it could endorse all or part of the draft or require the EBA to make changes.
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