EPFSF: From Basel I to Basel II

19 January 2005

The successful transposition of the Basel II framework into Community law through the Capital Requirements Directive should improve financial institutions' risk management practices and foster financial stability in the EU. Since the Directive helps to protect deposits and investments, applying it widely is in the interest of European depositors, borrowers and investors. However, some challenges remain before the legislative process can be successfully completed. Ensuring a level playing field with non-EU institutions, incorporating updated trading book calibrations, maintaining sufficient flexibility to adapt the body of law to changes in financial services markets and ensuring even implementation in the EU are key steps towards a successful outcome.

Report

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