Publication

This policy brief discusses the proposed EU banking legislation which would implement the Basel III standards into EU law. Among other things, the proposal increases the quality and quantity of the minimum capital; introduces new rules on liquidity, leverage ratios, counter-cyclical buffers and systemically important financial institutions; and amends the definitions of counterparty credit risk and rules for the banking book. The author argues that while the proposal is certainly a game changer for many market actors, the proposed rules are not as ambitious as they claim to be.