The European Commission's proposals for Capital Requirements
Directive (CRD V) have been deemed by some as a retaliatory
response to US regulatory standards. But Clifford Chance's
Simon Gleeson believes the proposals will not substantially
damage US banks with operations in the EU.
The Commission’s package was announced on
November 23 and includes proposals on total loss-absorbing
capacity (TLAC) and minimum requirement for own funds and
eligible liabilities (MREL).
And while many industry participants have welcomed the
proposals, particularly a binding stable funding and leverage
ratio requirement, others have voiced concern over the
treatment of foreign banks under the rules.
The proposals mirror US intermediate holding company rules
that ring-fence foreign bank...