The Riksbank wants the EU to comply with Basel III

In a joint letter, the Riksbank and 24 other national central banks and financial supervisory authorities from 20 member states within the EU are now calling for the European Commission to ensure that the proposal on updated capital adequacy rules for banks in the EU follows the global agreement known as Basel III. More precisely, we who are signing the joint letter wish to particularly emphasise that the output floor for risk-weighted assets and the standard method for credit risk should comply with the international agreement and that the EU should not introduce any EU-specific deviations from the rules. Deviating from the Basel agreement could have a negative impact on confidence in both the European banking sector and the EU regulatory framework. This in turn risks leading to negative consequences for the banks and the economies in general. It is therefore important that the global agreements are met in full, on time and in a consistent manner.