The EU should comply with the Basel III agreement
07/09/2021 - Press Releases
- The Bank of Greece and 24 other national central banks and financial supervisory authorities urge the EU Commission to stick to the Basel III agreement.
- During the autumn, the European Commission will publish a proposal for updated capital adequacy rules for banks within the EU.
In a joint letter, Bank of Greece Governor Yannis Stournaras and 24 other national central bank governors and heads of financial supervisory authorities from 20 Member States of the EU are calling on the European Commission to ensure that the proposal on updated capital adequacy rules for banks in the EU follows the global agreement known as Basel III.
More precisely, the signatories wish to emphasise that the output floor for risk-weighted assets and the standardised approach for credit risk should comply with the international agreement and that the EU should not introduce any EU-specific deviations from the rules. Deviating from the Basel III agreement could have a negative impact on confidence in both the European banking sector and the EU regulatory framework. This, in turn, risks leading to negative consequences for banks and the economies in general. It is therefore important that the global agreements be met in full and in a timely and consistent manner.