WEDNESDAY, 01/02/2023 - Scope SE & Co. KGaA

The Wide Angle: Loosening regulatory capital requirements would be a disservice to European banks

European banks are dusting off the old lobbying narrative that post-GFC regulation has placed them in a less competitive position than their US peers by forcing them to operate with lower profitability and needlessly stringent capital requirements.

Sam Theodore disagrees with this view, highlighting the crucial role the new regulatory architecture has played and continues to play in restoring and preserving market confidence in the banking sector. Loosening it at this stage is an unnecessary and risky step, liable to make the sector more vulnerable to the ghosts of market uncertainty, distrust, and fear.

Read the latest edition of The Wide Angle.

And join Sam Theodore for a webinar at 15:30 CET on Monday February 13^th where he will explain why he opposes steps to loosen bank capital requirements. Register here.