A new front with Europe is being opened by the US according to Bloomberg. The US is pressing for changes in global banking rules that will burden some major eurozone banks, laying the groundwork for a conflict with European supervisory authorities.

Federal Bank officials (FED) pursue the revocation of a decision with which the eurozone is treated as a single domestic market in evaluating the cross -border openings of banks, according to sources knowing the issue. Large European companies, including BNP Paribas, have benefited from this change, as some capital burdens depend on the international status on which a bank is evaluated by regulators.

The US Initiative, which is to be discussed at a meeting of the Basel Committee on Banking on Wednesday, comes in a framework of already fragile international coordination. It has already sparked reactions to the eurozone’s supervisory authorities, who fought hard to conclude the agreement in 2022 on the grounds that the European Banking Union means that it should be treated as a market, two of the sources at the agency, which have requested to be respected.

Officials of the Basel and European Central Bank committee refused to comment, as well as the federal bank, which is pressing on the case by the US authorities.

The US claims that banks’ activities within Europe will be considered cross -border again. This would increase the risk level The largest European banks, possibly leading to higher capital charges under the so-called G-Sib regime.

BNP Paribas shares fell up to 2% after the news, before recovering and covering their losses. The French bank had faced an increase of 50 base points in its capital burden before the 2022 agreement. A bank spokesman refused to comment.

On the European side, US demands are addressed by the ECB’s upper supervisor, Claudia Bhoh, who is pushing to maintain the current system, one of the sources said.

Another eurozone official questioned whether the US could unilaterally renew the EU’s single jurisdiction. Promoting the issue through the Basel Commission would probably cause nuisance in many other countries, especially in Europe, he said.

The Basel Committee, which consists of 28 jurisdictions, includes seven eurozone countries. The European Union is also a member.

European banks would be very concerned about any moves to cancel today’s treatment of banks and encourage the supervisory authorities to resisted to hertwo senior executives told Bloomberg.

The episode, however have become unpredictable.