BRUSSELS Nov 22 Top American or Asian banks
will have to hold enough capital buffers for their activities in
the European Union to face crisis without help from their
headquarters, a draft EU law says, according to officials
familiar with it.
The provision is included in a reform of EU rules for banks'
capital requirements aimed at ensuring that large lenders are
able to sustain significant losses without requiring a state
Non-EU global systemic banks or foreign lenders with EU
assets of at least 30 billion euros will be required to set up
an "intermediate parent undertaking" for their entities in the
EU, which will need to abide by capital requirements as a
stand-alone company, regardless of the financial soundness of
its parent company, according to the draft proposals.
This is likely to increase costs for the EU operations of
large U.S. banks, such as Citigroup, JPMorgan Chase
or Goldman Sachs, and for their Japanese and
Chinese counterparts with activities in the EU.
The plan, meant to increase banks' safety and mirroring
existing U.S. regulations, may also hit top British banks, such
as Barclays or HSBC, after Britain quits the
The proposals will be unveiled by the European Commission on
Wednesday and will need the backing of EU states and European
lawmakers to become a law.
(Reporting by Huw Jones and Francesco Guarascio; Editing by