Finalised Basel III standards (Dec 2017) – Call for Advice
On 4 May 2018, the EBA received from the European Commission a Call for Advice (CfA) on the impact and implementation of the finalised Basel III standards (deadline 30 June 2019).
The revisions in the scope of the CfA include the revised standards in the areas of credit risk, operational risk, CVA risk, leverage ratio and output floor – agreed by the BCBS on 7 December 2017 – as well as the Fundamental Review of the Trading Book (FRTB). In order to respond to the CfA, the EBA took the following initiatives:
- On 13 August 2018 the EBA launched a data collection exercise which runs in parallel with the June 2018 EBA-BCBS Basel III monitoring exercise;
- On 9 November 2018 the EBA launched two qualitative questionnaires, addressed to the institutions participating in the QIS and a selected list of External Credit Assessment Institutions (ECAIs) respectively.
QIS templates and instructions, qualitative questionnaires, other related material as well as the results of the CfA analysis are made public on this page as they become available.
References:
Text of the Call for Advice: Call for Advice on the finalised Basel III framework
Text of the Finalised Basel III standards (Dec 2017): Basel III: Finalising post-crisis reforms
To ensure that this data collection, which covers a wider sample of institutions, remains proportionate to the size and complexity of each institution, the EBA distributed two different types of QIS templates, which build on and expand the EBA-BCBS Basel III regular monitoring templates.
In particular, the ‘full' template was distributed to all institutions participating in the June 2018 EBA-BCBS monitoring exercise and to those institutions that only participate in the Call for Advice data collection that are large (as defined by Tier 1 capital higher than EUR 1.5 billion). The ‘reduced' template was distributed to institutions participating only in the Call for Advice data collection that are medium or small (as defined by Tier 1 capital equal or lower than EUR 1.5 billion).
The two sets of templates available for download are for information purposes only. Institutions participating in the data collection should only use templates they received from their Competent Authority.
- EBA QIS 2018 Template Instructions V5.0 (Last Updated: 26 November 2018)
- QIS 2018 template V5.0 (Basel III v3-8-3) - reduced (Last Updated: 26 November 2018)
- QIS 2018 template V5.0 (Basel III v3-8-3) - full (Last Updated: 26 November 2018)
The EBA has launched two sets of questionnaires to gather additional information - not already covered in the QIS templates - on the impact and implementation aspects of the Basel III reforms agreed by the BCBS on 7 December 2017.
In particular, the qualitative questionnaire addressed to institutions was distributed to all institutions participating in the Call for Advice data collection. The qualitative questionnaire addressed to ECAIs was distributed to all Credit Rating Agencies (CRA) that have been registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (the Credit Rating Agencies Regulation) as of November 2018.
The two sets of questionnaires available for download are for information purposes only. Participating institutions should only respond to the online version of the questionnaire they have received from their Competent Authority. ECAIs should only respond to the online version of the questionnaire they have received from the EBA.
- Qualitative Questionnaire for institutions (Last Updated: 23 November 2018)
- Qualitative Questionnaire for ECAIs (Last Updated: 16 November 2018)
The EBA published its advice on the implementation of Basel III in the EU, which includes a quantitative analysis of the estimated impact based on data from 189 banks, and a set of policy recommendations. This work responds to a Commission's call for advice. The impact assessment shows that the full implementation of Basel III, under conservative assumptions, will increase the minimum capital requirement (MRC) by 24.4% on average. This increase in capital requirements will imply an aggregate shortfall in total capital of about EUR 135.1 billion (EUR 91.1 billion in terms of common equity tier 1, CET1). The majority of the capital impact occurs in large globally active banks, while the impact on medium-sized banks is limited to 11.3% in terms of MRC, leading to a shortfall of EUR 0.9 billion, and on small banks to 5.5% MRC with a EUR 0.1 billion shortfall. The EBA supports the full implementation of the final Basel III standards, which will contribute to the credibility of the EU banking sector and ensure a well-functioning global banking market.
- Basel III reforms: updated impact study results based on data as of 31 December 2019
- Additional analysis for the revision of own fund requirements for credit, operational market and CVA
- Basel III reforms: impact study and key recommendations – Macroeconomic assessment, credit valuation adjustment and market risk
- Policy advice on the Basel III reforms: credit valuation adjustment and market risk
- Basel III reforms: impact study and key recommendations
- Policy advice on the Basel III reforms on Securities Financing Transactions (SFTs)
- Policy advice on the Basel III reforms: Operational risk
- Policy advice on the Basel III reforms: Output floor
- Policy advice on the Basel III reforms: Credit risk