European Banking Authority (EBA) publishes report on Basel III reforms

In December 2017, the Basel Committee completed its work on the Basel III framework, consisting of a set of prudential standards, which will be phased-in from 2022 together with the framework for market risk. In May 2018, EBA was called for advice by the European Commission for matters such as the overall impact of the reforms and the implementation of several building blocks of the reform as well as any information necessary to identify implementation challenges and address inconsistencies in both the current and revised regulatory frameworks. Hence, this report comes as a result to this request, and it outlines EBA’s quantitative analysis of the estimated impact, and a set of policy recommendations.

As an overall message of the report, EBA recommends that the Basel framework be transposed into European legislation.

This article provides further insight on EBA’s granular policy recommendations for four main areas of the Basel package.