Banks urged to avoid ‘complexity’ in legacy capital clean-up

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Banks urged to avoid ‘complexity’ in legacy capital clean-up

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A0AK67 Thick clean rope tied in a complex knot and casting a shadow on a smooth blue surface. Image shot 2004. Exact date unknown. | Alamy Stock Photo

The European Banking Authority has asked banks again to do everything necessary to eliminate “infection risk” from their balance sheets, as some lenders seek new ways to keep cheap forms of legacy capital in their liability structures.

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