BRUSSELS, 7 November 2016 – As the Basel Committee on Banking Supervision (BCBS) actively pursues a framework for banking supervision and regulatory reform, Europe's savings and retail banks have especially raised grave concerns that may arise for the banking sector, especially in Europe, as a result.
WSBI-ESBG has reached out to policymakers at ministerial level and central bank governors to share our position, including a high-level exchange WSBI-ESBG leaders met with Basel Committee Chairman Stefan Ingves on the sidelines of the two-day IMF / World Bank meetings in Washington, D.C.
As part of outreach efforts, WSBI-ESBG has published on its website a list of concerns by its members and possible solutions around Basel reform, including the possibility of 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.
The next BCBS meeting will take place at the end of November, where precise and final decisions on the reforms are expected to be made. The Governors and Heads of Supervision (GHOS) will convene again in early January, where the decisions will most probably be endorsed.
>> See: Perspective on Basel reform