The transcript discusses the agreement on a 72.5% floor for banks, highlighting the compromise between different countries like France, Germany, and the US. It explains the impact on banks, particularly the increase in the capital ratio, and the technical work done to address risk weight variability. The discussion also covers the ongoing review of the trading book, its implementation challenges, and future steps to align with other financial regulations.

What was the agreed financial floor percentage that was considered a compromise?

• 75%

• 72.5%

• 70%

• 80%

Which aspect of the financial regulations saw an increase, making some banks happier than expected?

• Interest rates

• CT1 ratio

• Loan limits

• Deposit requirements

What was the main technical focus to address risk weight variability?

• Lowering interest rates

• Enhancing liquidity

• Increasing capital

• Reducing risk weight variability

Why was the implementation of the trading book delayed beyond 2019?

• Market instability

• Technical difficulties

• Lack of funding

• Regulatory changes

What additional work is needed for smaller banks in relation to market risk?

• Increasing capital reserves

• Developing a new standardized approach

• Enhancing customer service

• Reducing loan sizes