European Commission Targeted Consultation on the Competitiveness of the EU banking sector

2026

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This industry response to the European Commission's consultation outlines key challenges and recommendations for enhancing the competitiveness of the EU banking sector, particularly concerning prudential frameworks and market risk.

* **Market Risk and Capital Frameworks:** Discusses the impact of the Fundamental Review of the Trading Book (FRTB) and the output floor on banks' use of internal models, advocating for calibration changes and international coordination.
* **Standardized Approach for Counterparty Credit Risk (SA-CCR):** Highlights concerns regarding the design and calibration of SA-CCR, particularly the alpha factor, and its implications for capital requirements and end-users.
* **Digitalization and Cryptoassets:** Addresses the opportunities and challenges of new technologies like tokenization and proposes recommendations for the prudential treatment of cryptoassets to encourage participation.

Tags: banking, competitiveness, prudential framework, market risk, capital requirements

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