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EU materially non-compliant on Basel III 

December 8, 2014
Keith Mullen, IFR Asia

SO WHAT WAS the Basel Committee on Banking Supervision’s final score implementation of Basel III rules in the nine European Union countries that are part of the committee? Materially non-compliant. That’s right! Probably a bit harsh as an overall score, but the countries came up short on two measures and on that basis that you can only score as well your lowest grade. Well, the score was the score.

No big surprises, mind you, as the outcome had been leaked. But the EU’s slightly frosty response (“we agree to disagree”) and its contention that Basel has misread its own standards suggests that, while the Regulatory Consistency Assessment Programme under which the school report was compiled is supposed to facilitate dialogue between committee members, this specific conversation may not have been that cordial.

RCAP functionaries are hardly the attack dogs of the Basel regulatory mafia, but you wonder if they’re looked on as those slightly grey operatives who stand in the shadows taking copious notes you just know are being pushed up the line.

Read more: IFR Asia

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