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Source: European Banking Authority

Headline: EBA updates its Basel III impact study following the EU Commission’s call for advice

The European Banking Authority (EBA) published today its updated ad-hoc impact study on the implementation of Basel III in the EU in response to the EU Commission’s call for advice (CfA). The study is based on a sample of 99 banks and has a reference date of December 2019. Under the full implementation of Basel III and conservative assumptions, the updated impact is meaningfully lower than previously estimated, using June 2018 data and a consistent sample.  In addition, the Report presents some qualitative reflections on the potential interactions between different elements of Basel III framework and the estimated adverse impact of the COVID-19 crisis. The EBA reaffirms its policy recommendations put forward in its previous advice and supports the full implementation of the final Basel III standards in the EU, which will contribute to the credibility of the EU banking sector and ensure a well-functioning global banking market.

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