Banking regulation: Commission welcomes Basel Committee’s agreement on post-crisis reforms

he European Commission welcomes the agreement at the Basel Committee on Banking Supervision to further strengthen the international post-crisis rules for banks and sets out its approach to these new rules in the EU. This agreement is the result of a strategic review of those international reforms which was conducted by the Basel Committee with the aim of improving the balance between simplicity, comparability and risk sensitivity. The agreement will now be subject to a thorough Commission consultation and impact assessment to evaluate the consequences for the EU economy before it can be translated into EU law taking into account the results of the impact assessment. Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union, said: “EU banking regulation must provide a foundation for a stable banking system that supports the European economy. International cooperation in this matter is crucial to ensure financial stability and a level playing field for banks globally. The measures that were agreed by the Basel Committee represent the last major piece of the regulatory reform that was launched in the wake of the financial crisis. It is now essential that all major jurisdictions implement all elements of this agreement. The Commission will now carry out a thorough and detailed impact assessment.” Full press release available here.