Capital relief

Capital - capital requirements - supervision - regulation - financial services.

Capital adequacy means minimum levels of regulatory capital for banks, insurance companies and certain other financial services firms.

Capital relief is a deduction from the minimum level of regulatory capital in the individual circumstances of a regulated firm.

Capital relief for STS is insufficient

"In September 2024, Draghi recommended changes to revitalise EU securitisation and CMU [including]:

• a cut in current STS capital charges that exceed corresponding actual risks – a bone of contention shared with PCS, which says the growth of EU securitisation is being held back not by the high standards of the STS (simple, transparent and standardised) regime, but by insufficient capital relief for the STS transactions..."

Mario Draghi, former president of the European Central Bank - quoted in The Treasurer - Issue 4 of 2024, p18.

See also

• Bank for International Settlements (BIS)
• Capital
• Capital adequacy
• Capital charge
• Capital markets union (CMU)
• Capital Requirements Directive (CRD)
• Capital Requirements Regulation (CRR)
• Corporate treasury
• European Central Bank (ECB)
• Insurance
• Insurance Capital Standard
• Microprudential
• Prime Collateralised Securities (PCS)
• Regulatory capital
• Reserve requirements
• Risk Weighted Assets (RWAs)
• Securitisation
• STS
• Supervision
• Treasury