EC Consults on Recent Amendments to the BCBS Basel III Framework
EC launched a consultation to seek input from stakeholders on the impact of recent amendments to the Basel III framework. This is an exploratory consultation seeking first views on the last piece of Basel III banking regulatory reform, which was agreed by BCBS in December 2017. This consultation is not linked to a legislative proposal. Stakeholders must use the accompanying questionnaire to send their feedback. Comments are due by April 12, 2018 and EC has received 56 responses to the consultation.
The consultation aims to gather views from interested parties on the potential impact that amendments may have on the EU banking sector and the wider economy, in addition to highlighting possible implementation challenges. The implementation of this agreement in the EU would require amendments to current banking regulations, particularly the Capital Requirements Regulation or CRR. The amendments in the BCBS Basel III finalization package of December 2017 include revisions to the standardized approach for credit risk, revisions to the internal ratings-based approaches for credit risk, minimum haircut floors for non-centrally cleared securities financing transactions, an overhaul of the credit valuation adjustment framework, a new standardized approach for operational risk, and replacement of the "Basel II" floor with an aggregate more risk-sensitive output floor. Before considering the related amendments to current banking regulations, EC will perform a thorough impact assessment, in accordance with its Better Regulation agenda. The results of this consultation will inform the overall assessment of EC.
Related Links
Keywords: Europe, EU, Banking, Basel III Finalization, Impact Assessment, CRR, Responses to Consultation, EC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
IMF Publishes Reports on 2018 Article IV Consultation with AngolaRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards