Featured Product

    EBA Welcomes Final Basel III Reforms and Assesses Their Impact in EU

    December 07, 2017

    EBA welcomed the agreement reached on the finalization of the Basel III framework by BCBS, which concludes the global post-crisis prudential reforms. EBA also published a summary of the results of its study showing the impact of the agreed reforms on the EU banking sector.

    EBA analysis showed that, under the revised international standards, minimum required capital for the EU sample would increase by 12.9% in weighted average terms. The increase is mainly driven by the impact of the reforms on global systemically important institutions and larger institutions (Group 1 banks). The assessment also finds that the weighted average CET1 ratio, calculated in accordance with the revised framework, is 0.6 percentage points lower than the status quo. The aggregate output is the main driver of the capital impact for the EU sample under the new standards. EBA will publish a more detailed cumulative impact assessment report in due course.

    The impact assessment is based on data as of December 2015. Consequently, numbers may not fully reflect EU banks' current situation, as they do not account for the significant capital increases and adjustments made to business models since 2015. The sample used to assess the impact of the revised standards includes 88 European institutions from 17 EU member states, of which 36 are Group 1 institutions and 52 are Group 2 institutions. “Strong international standards are an essential common yardstick that will support a safe and sound cross-border banking on a global scale,” Andrea Enria, the EBA Chairperson, said while welcoming the Basel agreement. ”The EBA is committed to engaging with competent authorities and European co-legislators to ensure a successful implementation of the standards in the EU,” she added.

     

    Related Links

     

    Keywords: Europe, EU, Banking, Basel III, Final Basel III Reforms, Capital Framework, EBA

     

    Featured Experts
    Related Articles
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    FDIC Letter on Submission of Call Reports by End of January 2020

    FDIC, in a letter to financial institutions, announced that the Consolidated Reports of Condition and Income (Call Reports) for the December 31, 2019 report date must be submitted to the Central Data Repository of the relevant US agencies by January 30, 2020.

    January 13, 2020 WebPage Regulatory News
    News

    EBA Consults on Calculation of Own Funds Requirements for Market Risk

    EBA is consulting on the draft regulatory technical standards for calculation of the own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.

    January 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Report on Adoption of Big Data and Advanced Analytics

    EBA published a report that addresses the key considerations in the development, implementation, and adoption of big data and advanced analytics in the banking sector.

    January 13, 2020 WebPage Regulatory News
    News

    CBB Publishes Consultations and Revised Rules in December 2019

    CBB published various consultations and revised regulatory modules that are relevant for Islamic and conventional banks, insurers, and the investment business of banks.

    January 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4487