The Supervision Blog
Strong rules, strong banks: let’s stick to our commitments
4 November 2022
We are very concerned that in the ongoing legislative discussions in the EU Council and the European Parliament on the EU banking package, numerous calls have been made to deviate from the international standards. The ECB and the European Banking Authority (EBA) have consistently argued for a full, timely and faithful implementation of Basel III. The rules have been carefully articulated to ensure a worldwide minimum safety net against the plethora of risks that we painfully experienced during the global financial crisis.
The legislative proposal of the European Commission already included several deviations from the Basel III rules. The EBA and the ECB were critical of these deviations, as they would leave pockets of risk unaddressed and could increase risks to financial stability.
The full post is available at https://www.bankingsupervision.europa.eu/press/blog/2022/html/ssm.blog221104~52d1c3a8e1.en.html