EBA Welcomes the EC Call for Advice on Basel III Implementation in EU
EBA welcomed the call for advice by EC on the implementation of Basel III framework, which BCBS had finalized in December 2017. EC issued the call for advice to EBA for revising the own fund requirements for credit, operational, market, and credit valuation adjustment risk. In its call, EC asked EBA to prepare a comprehensive analysis to assess the potential impact of the different elements of the Basel reform on the EU banking sector and the wider economy.
In response to the call for advice, EBA will provide a quantitative and qualitative assessment of the new Basel III framework. EBA is planning to launch, by July, an overall data collection exercise, for which it will provide more details in the coming months. The evidence collected from this exercise will form the basis for the EBA policy recommendations. In this exercise, EBA also plans to include smaller and less complex banks, along with certain institutions with specific business models. A broad representation of the EU banking sector will be crucial to ensure an assessment of the impact on both large and small EU banks. Broad representation is considered to be a prerequisite for an evidence-based and proportionate policy making. The EBA Chairperson Andrea Enria, stated that EBA is "... looking forward to supporting the EC to ensure an effective and proportionate implementation of the new framework in EU." EBA aims to engage with national authorities, the industry, and European co-legislators to ensure a successful implementation of the finalized Basel III standards in EU.
Related Links
Keywords: Europe, EU, Banking, Basel III, Impact Assessment, Basel III Finalization, Proportionality, EC, EBA
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
ESMA Clarifies Clearing Obligation for Pension Scheme ArrangementsRelated Articles
BCBS Proposes to Amend Rules on Minimum Haircut Floors for SFTs
BCBS is consulting on two technical amendments to the rules on minimum haircut floors for securities financing transactions, or SFTs.
BIS Launches Euro Green Bond Fund for Central Banks
BIS launched a EUR-denominated, open-ended fund for green bond investments by central banks and official institutions, following the launch of the first BIS green bond fund denominated in USD in September 2019.
EBA Announces Stress Test Timeline; ECB Sets Up Climate Change Center
EBA announced that it will launch the 2021 EU-wide stress test exercise, with the publication of the macroeconomic scenarios on January 29, 2021.
BoE Discontinues Form CX on Capital Expenditure and Finance Leasing
BoE announced that the reporting entities are no longer required to report Form CX after the fourth quarter of 2020 reference period, with the last collection on January 29, 2021.
ECB President Answers Queries on Application of EU Taxonomy
ECB published a letter in which the President Christine Lagarde answered questions, from a Member of the European Parliament, on the application of the EU taxonomy on sustainable finance.
PRA Issues Direction on Capital Buffers, Finalizes PS1/21 on SM&CR
PRA published a direction for modification by consent of 5.1 to 5.3 and 5.5 of the Capital Buffers Part of the PRA Rulebook.
BIS Innovation Hub Sets Out Work Program for 2021
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
EC Plans to Consult on Crisis Management and EDIS Framework Revisions
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA Finalizes Remuneration Standards for Investment Firms in EU
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
ECA Recommends Actions to Enhance Resolution Planning for Banks
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.