|
|
Addressing the finalisation of regulatory reforms by the Basel Committee on Bank Supervision (BCBS), under the process commonly called ‘Basel IV’, the Board defined this package as most onerous given that these measures can pose a threat to financing in the European economy, in particular with regard to real estate and specialized financing services, and may harm the competitive position of European banks in the global market.
The European Banking Federation (EBF) Board urged European and international regulators, policymakers and supervisors to set forth a balanced and calibrated approach when it comes to shaping operating conditions for the European banking sector as part of the overall international framework. Such balance and calibration is necessary for creating the conditions under which banks can develop strategies that support a long-term business approach.
The EBF Board meanwhile welcomed TLAC as a global standard for global systemically important banks (G-SIBs) around the world and agreed that there is no need to reopen discussions at European level about the appropriate level of loss absorbency calibration. The MREL methodology that will be applied to all banks in Europe on an individual basis taking into consideration banks’ resolution strategies will need to be consistent with TLAC. In general the application of MREL should not exceed the level of TLAC and individual add-ons should only be applied where they are justified by impediments to resolvability.
In addition to the continued regulatory pressure, the EBF Board noted other additional structural developments in the banking sector, including the emergence of new financial technologies provides new opportunities for banks to transform their business models.
Extending discussions from earlier meetings about conduct in the banking sector, EBF Board members fully agreed on the need for all actors in the European banking sector to promote the importance of culture and behaviour in order to help re-establish trust in the industry.