EU Delays Bank Capital Calculation Rule After Nordic Protest

The European Commission will take an extra month to decide on rules affecting how banks calculate their capital ratios after Scandinavia criticized existing plans that the region argues would unduly penalize its banks.

The decision to delay follows an outcry from bankers associations in Denmark, Sweden, Norway and Finland, who say a European Banking Authority proposed reporting requirement for capital buffers would overstate the risks associated with their mortgage assets. The commission had been due to decide on the EBA’s proposal this month.