Global banking watchdogs have agreed to a limited review of a twist in their capital rules after US officials said the treatment unfairly favors European lenders.
The Basel Committee on Banking Supervision, which sets global bank capital rules, on Wednesday said that it would “consult later this year” on possible governance changes to the controversial practice, known as ASTRA. The twist gives a more favorable treatment to European banks’ cross-border exposures in countries that are part of the bloc’s banking union than other international activities.
Euro-region supervisors had fought hard for the deal when it was agreed in 2022, on ...