EC welcomes the agreement on Basel III reforms and follows up on the agreement to further strengthen the international post-crisis rules for banks, by setting out its approach to these new rules in the EU. The agreement will now be subject to a thorough EC consultation and impact assessment to evaluate the consequences for the EU economy, before it can be translated into the EU law.
The Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, has endorsed a package of amendments to the Basel III framework, the internationally agreed prudential standards for banks, that aim to finalize the post-crisis reforms. This agreement is the result of a strategic review of the international reforms; the review was conducted by the Basel Committee to improve the balance between simplicity, comparability, and risk-sensitivity.
The implementation of this agreement in the EU would require amendments to current banking regulations, including the Capital Requirements Regulation (CRR). Before proposing such amendments, along with a thorough impact assessment, the EC will also consult the EU institutions, member states, and various stakeholders. Any legislative proposal would be independent from the CRR amendments that were proposed by EC in November 2016 and that are currently being negotiated by the European Parliament and the Council. In the EU, the implementation of Basel standards is done through the CRR and the Capital Requirement Directive (CRD).
Keywords: Europe, EU, Banking, Basel III, CRR, CRD, EC
Previous ArticleMAS Consults on Anti-Commingling Framework for Banks
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
PRA published a public working draft, or PWD, of version 1.2.0 of the BoE Insurance XBRL taxonomy, along with the related technical artefacts.
CPMI published a report that sets out nineteen building blocks for a global roadmap to improve cross-border payments.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.