Implementing the Basel 3 final reforms in the EU: The European Council Agrees its General Approach

The EMEA Centre for Regulatory Strategy has published a new blog analysing the European Council’s General Approach on the CRD6/CRR3 Banking Package legislation and the implementation of the final Basel 3 framework in the EU.

You can read our analysis here

  • The European Council has agreed its General Approach on the legislation that will implement the final Basel 3 framework in the EU. This is an important milestone in the EU’s long negotiations to implement Basel 3. 
  • The Council’s agreement on any legislative file is
    usually a good indicator of the EU’s final position.
  • The Council’s text makes a number of important amendments to
    the Commission’s proposal, including a significant change to the
    application of the Standardised Output Floor (OF).
  • Overall, however, the Council has kept the bulk of the
    Commission’s proposed approach. As a result, the EU continues to look likely to implement a version of Basel 3 that diverges substantially from the international standard.
  • Banks should now update their assessment of the EU’s approach
    to Basel implementation and its likely impact on their business models and compliance programmes.
  • This blog assesses what has been agreed by the Council, how
    it differs from the European Commission’s 2021 proposal, and what the next steps are in the path to finalisation and implementation.

Click here to read the full analysis on the Deloitte Financial Services Blog. 

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