EU wants Lehman-proof capital requirements

The European Commission launched on the 9 February 2011 a consultation to gather stakeholders' views on two specific issues in the area of counterparty credit risk, namely:

+ Capitalisation of bank exposures to central counterparties (CCPs)
+ Treatment of incurred credit valuation adjustments (CVA)

The results of this consultation will feed into the work being done to implement the Basel III reform package, setting the new prudential requirements for banks, into EU law. The European Commission will come forward with proposals before the summer of 2011.

• Primary Source

European Commission: MEMO/11/77: Consultation on counterparty credit risk - frequently asked questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/77&format=PDF&aged=0&language=EN&guiLanguage=en

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