EU’s Bank Rules Overhaul Should Look Beyond AT1, Campa Says (1)

European Union plans to simplify bank rules must make future capital needs clear and avoid fixation on subordinated debt, a top watchdog said.

The complexity of additional Tier 1 capital is one of the issues to tackle, “but I would not even put it high on the list,” Jose Manuel Campa, who leads the European Banking Authority, said in an interview. “The holistic view of giving clarity to the banks about how the capital requirements will evolve for them over time is more important.”

Separately, France’s banking lobby has had discussions with European officials in recent months ...