EU Said to Plan Concession on Tax Credits as Bank Capital

The European Union plans to give banks longer to prepare for rules restricting the use of tax credits as part of their capital, four people with direct knowledge of its negotiations said.

The Basel 3 regulations will stop European banks from using so-called deferred tax assets, or losses they can write off against tax, for more than 10 percent of their capital base. The EU plans to double the period that lenders have to implement the change to 10 years, said the people, who asked not to be identified because the talks are private.