In other words, just because a bank’s total assets fall below a specified threshold, that is nowhere near enough for it to be included in the small banking box. Second, we are discussing introducing transitional arrangements to help make it easier to switch between regimes – something that we want to be an option.
Ladies and gentlemen, a sensible and workable definition of institutions whose burden could be relieved is perfectly feasible. And while it may appear that way at first glance, creating the small banking box does not necessarily require a whole new set of rules. All that is needed is a short section in the CRR dedicated to the issue.