EBA proposes simplification to capital framework without weakening resilience

LONDON/MADRID, June 16 (Reuters) - The European Banking Authority on Tuesday set out what it called "targeted" and "balanced" proposals to simplify the bank capital framework without weakening the sector's resilience.

Regulators globally are weighing easing the burden on banks to support competitiveness and economic growth, although European banks have been primed not to expect major changes after the European Central Bank earlier proposed streamlining rules without easing overall capital requirements.

In its report, the EBA, which sets regulatory standards for EU banks, outlined options for limited changes to how bank capital is structured, including merging some buffers and streamlining leverage ratio requirements, without changing the composition of capital. 

It would be for the European Commission to take the proposals forward. 

The EU executive is due to publish an assessment of bank competitiveness in July, which is likely to factor in the EBA's work. Any changes would require legislative scrutiny and take a number of years to implement.

France and Germany have urged Brussels to bring forward an ambitious "financial services simplification package" to make EU rules easier to navigate and less burdensome for firms.

Europe's banks last week also urged simpler rules to help them finance growth after saying that Europe faced a widening €1.4 trillion ($1.62 trillion) annual investment gap.

In some countries, particularly the United States, regulators now pushing to scale back requirements introduced after the global financial crisis and soften capital rules to boost growth.

(Reporting by Phoebe Seers in London and Jesús Aguado in Madrid;Editing by Tomasz Janowski)