European Banks Face $153 Billion Capital Hole Under Basel Rules

Large European banks need about 135 billion euros ($153 billion) to comply with the latest capital standards agreed to by the Basel Committee on Banking Supervision, according to a new estimate that raises the stakes for policy makers and the industry.

Global regulators clinched a deal in 2017 on how banks must measure the risk of mortgages, loans and other assets on their books. European lenders have argued they face an excessive burden and called for adjustments when the updated framework is brought into European Union law.