EU Implementation of Basel III in the Shadow of Euro Crisis

60 Pages Posted: 25 Jan 2014

See all articles by Jeffery Atik

Jeffery Atik

Loyola Law School Los Angeles

Date Written: January 23, 2014

Abstract

This article examines the implementation path of Basel III reforms within the European Union (“EU”). Basel III is the most recent version of the Basel global standards for bank regulation, adopted in response to the 2007/2008 financial crisis. Several EU Member States, as well as the EU Commission and the European Central Bank, participated in the design of the Basel III reforms. The greater part of these reforms is packaged in the so-called Fourth Capital Requirements Directive and Regulation, or CRD IV. It is the European sovereign debt crisis, and not the 2007/2008 financial meltdown, which dominated the mind of the EU legislator — and as a result European faithfulness to Basel III has attenuated. This article identifies two species of EU departures from Basel III: (1) treating a Basel III norm as a fixed obligation and not as a minimum standard; and (2) selective adoption of Basel III norms (Basel à la carte). It then discusses the future of Basel III in the EU as the Eurozone approaches a banking union.

Suggested Citation

Atik, Jeffery, EU Implementation of Basel III in the Shadow of Euro Crisis (January 23, 2014). Review of Banking and Financial Law, Vol. 38, p. 287, 2014, Loyola-LA Legal Studies Paper No. 2014-3, Available at SSRN: https://ssrn.com/abstract=2384206

Jeffery Atik (Contact Author)

Loyola Law School Los Angeles ( email )

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Los Angeles, CA 90015-1211
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