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Must read: WSBI-ESBG position on Basel reform

Must read: WSBI-ESBG position on Basel reform

Would lead to noticeable ratcheting-up of capital requirements



>> More: List of concerns, what can be done








​18 November 2016  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 raised serious concerns that may arise for the banking sector, especially in Europe, as a result.

​​The BCBS's planned reforms would lead to a noticeable ratcheting-up of capital requirements. ESBG members could be hit by this on their capacity to keep lending to the real economy – namely 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; Regulation; Supervision; European Institutions; Capital Requirements Directive and Regulation