New branch rules threaten Japanese banks’ EU plans

Draft CRR III may cause foreign banks to think twice before expanding in the EU

EU and Japan flags

The European Union’s new package of capital requirement reforms, proposed at the end of October, could prompt some Japanese banks to rethink their approach to the continent, which they regard as a less profitable jurisdiction in which to do business than the US.

Under the European Commission’s proposed amendments, which are part of the EU’s third capital requirements regulation (CRR III), any third-country bank branch with assets of €30 billion ($34 billion) or more within the EU may be asked

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