EBA will support the Commission in the implementation of the Basel III framework in the EU

The EBA welcomed the European Commission's call for advice on the implementation in the EU of the Basel III framework, which was finalised in December 2017. In its call, the Commission is asking the EBA to prepare a comprehensive analysis to assess the potential impact of the different elements of the Basel reform on the EU banking sector and the wider economy. Andrea Enria, Chairperson of the EBA, stated: "The EU is committed to adhering strictly to the global standards for internationally active banks, which will be crucial to support prudent and sound cross-border banking on a global scale. The EBA is, therefore, looking forward to supporting the European Commission to ensure an effective and proportionate implementation of the new framework in EU".

 

In response to the Commission's call for advice, the EBA will provide both a quantitative and qualitative assessment of the new Basel III framework. As a preliminary step, the EBA is planning to launch, by July, an overall data collection to which also smaller and less complex banks, as well as institutions with specific business models, will be invited to participate. 

 

This data collection exercise is particularly important  as the collected evidence will form the basis for the EBA policy recommendations. A broad representation of the EU banking sector in this exercise will be crucial to ensure an assessment of the impact on both large and small EU banks and is considered as a pre-requisite for an evidence-based and proportionate policy making process. The EBA will provide more details on the scope of the data collection exercise in the coming months.

 

Throughout this analysis, the EBA will engage with national authorities, the industry and European co-legislators to ensure a successful implementation of the standards in the EU.