The European Commission proposed additional measures for EU-based banks that aim to enhance “institutional resilience” of the European banking system. Among the measures include imposition of a 3 percent leverage ratio for banks (i.e., regulatory capital divided by total assets including certain off-balance sheet exposures attributable to its derivatives transactions). However, the EC proposes in order “not to disincentive client clearing,” that banking institutions be permitted to offset the amount of their exposures attributable to customers' derivatives positions cleared through qualifying clearinghouses by the amount of their client-posted initial margin. This would be different from the approach taken by the Basel Committee on Banking Supervision that does not permit such offset. The EC also proposed that non-EU globally systemically important banking institutions that have two or more institutions in the EU with the same ultimate parent establish an intermediate parent in the EU. Such entity may be a new holding company subject to EU capital requirements or an entity already in the EU specifically identified for such purpose. This measure appears likely taken in retaliation for a similar obligation imposed on non-US banks located in the US in 2014. The European Parliament and European Council will now consider the EC’s proposed banking measures.