BEGIN:VCALENDAR
VERSION:2.0
METHOD:PUBLISH
CALSCALE:GREGORIAN
PRODID:-//WordPress - MECv5.19.5//EN
X-ORIGINAL-URL:https://events.aforeconsulting.eu/
BEGIN:VEVENT
UID:MEC-3a15c7d0bbe60300a39f76f8a5ba6896@events.aforeconsulting.eu
DTSTART:20201027T100000Z
DTEND:20201027T110000Z
DTSTAMP:20200907T131500Z
CREATED:20200907
LAST-MODIFIED:20201216
SUMMARY:Basel III: Implications from COVID-19
DESCRIPTION:The Basel Committee on Banking Supervision (BCBS) completed the initial phase of the Basel III reforms in December 2017. These reforms seek to restore credibility in the calculation of risk-weighted assets (RWAs) and improve the comparability of banks’ capital ratios. RWAs are an estimate of risk that determines the minimum level of regulatory capital a bank must maintain to cover unexpected losses and is an integral element of the risk-based capital framework.\nThe main changes on credit risk (the main risk facing European banks) are to provide a more detailed risk-weighting approach, particularly for residential and commercial real estate and reduce the reliance on external credit ratings. With operational risk the reforms make it easier to compare RWAs across banks by removing the option to use multiple approaches and the option to use internal models. The revised output floor limits the amount of capital benefit a bank can obtain from its use of internal models relative to using the standardised approaches. The reforms also introduce a leverage ratio buffer for G-SIBs to make sure that the leverage ratio continues to act as a backstop to the risk-based requirements for G-SIBs.\nThe European Commission have made very clear that they are committed to implementing the revised Basel III rules on time. They were expected to present a legislative proposal in June 2020, but on 27 March BCBS announced a delay in the implementation of these reforms by one year to 1 January 2023.\nConsistent with previous implementations of Basel rules, the European Commission has reiterated that the EU will respect the BCBS agreement but will also take into account, within the flexibility allowed by the agreement, and accordingly adapt the framework to reflect European specificities. The EBA and ECB Banking Supervision have emphasised the importance of the EU not deviating from the rules agreed by the BCBS.\nOn the other hand, European Finance Ministers made a commitment in 2018 that the implementation would not lead to an increase in aggregate capital for EU banks. Many MEPs have also called on the European Commission to take into account EU specificities and there is increasing pressure for the EU to modify the Basel III reforms framework to mitigate the expected capital impact of the revised rules.\nThis event discusses whether COVID-19 should necessitate a further delay in the implementation of the Basel III standards? How extensive and in which areas should Europe deviate from Basel III? What are the implications of not deviating from the Basel agreement? Does implementation of Basel III in Europe make it more difficult for tackle structural weaknesses that plague European banks, such as low profitability, a lack of consolidation and NPLs?\n
URL:https://events.aforeconsulting.eu/events/basel-iii-the-lesson-from-covid-19/
ORGANIZER;CN=Luca Giusti:MAILTO:Luca.Giusti@aforeconsulting.eu
CATEGORIES:In discussion with webinar
ATTACH;FMTTYPE=image/jpeg:https://events.aforeconsulting.eu/wp-content/uploads/2020/09/basel-1-1.jpg
END:VEVENT
END:VCALENDAR