The Centre for European Policy Studies (CEPS) published the results of a survey on the practical implications of the new Basel II Accord for the European financial system.
CEPS undertook a statistical analysis of 54 relevant responses to achieve a direct assessment of how deeply the current proposal has been understood and accepted, or eventually objected, throughout the European financial industry,
Respondents delivered a positive overall assessment of the Basel II process and a full understanding of the new framework’s rationale. Nevertheless, the onerous compliance cost forecasts cast a shadow on the future of small banks.
However, these opinions about possible large-scale consolidation due to regulatory factors remain somewhat controversial The special treatment for SME financing seems to have the potential to put small banks back in game, since they typically lend money to small firms.
The survey endorses the plan announced by the Commission to apply Basel II to all banks and investment firms. In fact, the respondents praised the EU’s commitment to level the playing field, whereas they largely objected to the US approach.
Finally, cross-border issues are seen as possible flaws affecting not only the global competition but
also competition at the European level.
Full Paper
© CEPS - Centre for European Policy Studies
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article