European Banking Authority HQ - Tower 42, London
Banks may find conditions easier for them to hold capital against sovereign debt in the region thanks to a potential rule change from the European Banking Authority (EBA).
That is according to two insiders within the continent's financial system, who have told Bloomberg officials at the body are considering making changes to certain regulations in order to help the struggling banking sector.
Later this week, the EBA- which was established in November 2010 - will review the new capital rulings issued to financiers in December 2011 and one European Union source expects the so-called sovereign buffer clause to be among the items discussed.
Under current regulations, banks are aiming to raise €114.7 billion ($150.5 billion) in new capital by July this year.
However, major lenders were instructed to do so with a capital ratio of nine per cent - a figure that could now be adjusted due to the way the eurozone crisis is evolving.
By Claire Archer
