In a global first, Europe’s main bank regulator is revising the framework that sets capital requirements so that lenders reflect environmental and social risks in mandatory, industrywide buffers.

The European Banking Authority has identified “some short-term fixes” to minimum requirements — known as Pillar 1 — “that can already be implemented,” Chairman Jose Manuel Campa said in an interview. Others will be phased in over time, with some requiring new legislation, the EBA said.

The new requirements, outlined in a report published by the EBA on Thursday, mark the first in what’s set to be a continuous reworking of the capital framework within which European banks must operate. The goal is to reflect the increasing threat to financial stability that regulators now

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