8 December 2017

Association of German Banks welcomes European approach to Basel III

  • Banks have planning security
  • Implications for the economy not yet totally clear

The European Commission announced yesterday that it would carry out an impact assessment to evaluate the precise effects of the Basel III package. Christian Ossig, Member of the Senior Management Board of the Association of German Banks, welcomed the Commission’s announcement: “This approach is both correct and necessary. The banks will be able to adjust to Basel III and cope with the consequences. Matters will be eased somewhat by the long transitional periods.” After the lengthy negotiations, it was also important to the banks that they finally had planning security.

“But the implications of the Basel Committee’s decisions for the European economy need to be analysed in detail,” Ossig explained. Adverse effects could not be ruled out. Even if the banks would have preferred a different outcome, it had to be recognised overall that internationally standardised regulation marked an important step towards greater financial stability. In addition, the Basel Committee’s decisions continued – even with significant limitations – to provide for risk-sensitive capital charges.

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