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Basel reform: Concerns and solutions

Basel reform: Concerns and solutions

​​​​Planned Basel reforms would lead to noticeable ratcheting-up of capital requirements

>> ESBG position on Basel reform

>> Basel III page at BIS website​

BRUSSELS, 27 October 2016 – ​ESBG ​published today a list of concerns by its members and possible solutions around Basel reform

As the Basel Committee on Banking Supervision (BCBS) actively pursues a framework for calculating risk-weighted assets (RWAs), Europe's savings and retail banks have especially raised grave concerns that may arise for the banking sector, especially in Europe, as a result.

The list explores the Basel Committee on Banking Supervision's planned reforms that the association sees would lead to a noticeable ratcheting-up of capital requirements. ESBG notes that its members could be hit by this on their capacity to keep lending to the real economy – SMEs and households. The most relevant regulatory reforms include potential constraints on the use of internal model approaches, revisions to the standardised approach for credit risk and changes to the operational risk framework.

Basel III; Capital Requirements Directive and Regulation