Following on from an earlier post on conglomerate capital rules, the EU now made the conglomerate rules official. This is EU’s answer to criticism on its watered down implementation of Basel III. But it may never become clear why the EU uses conglomerate rules to compensate for weaknesses in bank rules. It looks like a costly fix of Art 49 in CRR, which helps French banks. For sure, this delegated regulation does not help the large French bank assurance companies, see in particular Article 9, but will it be enforced?

So, here is the text.