EU moves to delay increase in bank capital requirements over competitiveness concerns, FT reports

• Brussels will after Easter adopt legislation to neutralise the short-term impact of the Fundamental Review of the Trading Book, according to two officials familiar with the plans.
• The plan is to introduce a temporary multiplier that negates the increase for banks’ trading activities for up to three years, sources said.

The EU's decision to delay increased bank capital requirements reflects concerns about maintaining competitiveness in the banking sector. This temporary reprieve, potentially lasting three years, may help banks avoid immediate impacts on trading activities, suggesting a view that stricter capital requirements could stifle growth and innovation. Traders should monitor how this affects risk profiles and overall market sentiment around European banks.