Friday, December 09, 2022

European banks need 1,200 million euros to comply with capital regulations

European banks need 1,200 million euros to comply with capital regulations - ABE

London30 September – Banks in the EU will collectively need 1.2 billion euros ($1.18 billion) to fully meet a range of global capital requirements by 2028, according to the bloc’s banking watchdog.

European Banking Authority (abe) noted on Friday that the full implementation of the global Basel Agreement third This would mean an average increase of 15% from the current “Tier 1” core capital buffer, with most of the shortfall at smaller, national lenders, a sign of the banks’ strong capital position. Block banks in general terms.

Banks have faced very strict capital requirements as many of them were bailed out by taxpayers during the global financial crisis more than a decade ago.

basal requirements third They have already been implemented extensively, but some of the remaining elements will need to be fully integrated into the EU, UK, US and other jurisdictions before 2028.

The EU plans to delay it by two years until January 2025, the moment when banks will have to start implementing the remaining Basel rules third,

The bloc’s member states and the European Parliament are also negotiating the possibility of introducing temporary or permanent exemptions to some of the rules, as banks say implementing them fully and in a timely manner would mean a significant increase in capital requirements.

abe He added that if the EU’s proposed “adjustments” for Basel are taken into account, the deficit would be reduced to €400 million, but if additional buffers planned by the EU are added, the deficit would rise to €1.4 billion. goes.

Anna Botín, President of the European Banking Federation (EFBfor its acronym in English) and the president of Banco Santander said at a conference on Thursday EFB Dependence on banks will increase as EU states and companies take on more debt to revive growth and transition to net zero carbon emissions.

“In recent years, European banks have accumulated more capital than American banks, with the ratio exceeding €250,000 million since 2014. CET1 They remained stable in the United States,” Botin said.

At the same time, Europe must continue to promote a regulatory framework that can offer a competitive, profitable and robust banking sector to serve the economy. EBF,

(1 dollar = 1.0160 euros)

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