Implementing Basel III in Europe: Diagnosis and Avenues for Improvement

CEPS Policy Brief No. 275

20 Pages Posted: 3 Jul 2012

See all articles by Rym Ayadi

Rym Ayadi

HEC Montreal

Emrah Arbak

Centre for European Policy Studies (CEPS); University of Lyon II - Groupe dAnalyse et de Théorie Economique (GATE)

Willem Pieter De Groen

Centre for European Policy Studies (CEPS)

Date Written: June 26, 2012

Abstract

This Policy Brief provides a preliminary diagnosis of the proposed regulatory reforms contained in the Capital Requirements Directive and Regulation (CRD IV-CRR), which translate into EU law the Basel III standards adopted by the Basel Committee for Banking Supervision, and suggests avenues for improvement. The main criticism is that the proposal is not ambitious enough. In some crucial areas, such as the leverage ratio and the long-term liquidity requirements adopted under the Basel III framework, the CRD IV-CRR proposal stops short of making a strict commitment to introduce binding requirements and instead is contented with weaker (and possibly divergent) disclosure requirements.

Keywords: Basel III, Europe, capital requirements directive and regulation, CRD IV-CRR, EU, Basel committee for banking supervision

Suggested Citation

Ayadi, Rym and Arbak, Emrah and Pieter De Groen, Willem, Implementing Basel III in Europe: Diagnosis and Avenues for Improvement (June 26, 2012). CEPS Policy Brief No. 275. Available at SSRN: https://ssrn.com/abstract=2098932

Rym Ayadi (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

Emrah Arbak

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congrès
Brussels, 1000
Belgium

University of Lyon II - Groupe dAnalyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

Willem Pieter De Groen

Centre for European Policy Studies (CEPS)

1 Place du Congres, 1000
Brussels, 1000
Belgium

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