27.10.2021 – 12:11
BVR Federal Association of German Volksbanks and Raiffeisenbanks
The legislative proposal published today by the EU Commission is intended to implement the Basel III supervisory regulations for banks in the European Union, which were revised by the Basel Committee. “We welcome the Commission’s recognizable will to take the realities of the European banking market into account,” said Gerhard Hofmann, member of the board of directors at the Federal Association of German Volksbanks and Raiffeisenbanks (BVR). “However, I would have liked more courage to introduce the simplifications for small banks practiced in other countries such as Switzerland, the USA or now also in the United Kingdom in the Union. The EU Commission did not take an opportunity to propose more proportionality. ”
The BVR sees the postponement of the entry into force of the new regulations by two years to 2025 as positive. “This gives the banks and their data centers the necessary time to implement the new regulations, provided the EU completes its legislative process within the planned time,” Hofmann said this deliberate deviation from the guidelines of the Basel Committee. The BVR also supports the proposed retention of tried and tested European requirements, such as the low capital adequacy requirement for the financing of SMEs and the previous risk weighting for strategic investments in banking groups and associations. Otherwise there would have been a massive burden not only on the banks, but also on the economy as a whole.
Backing the future capital adequacy of loan commitments, which can be revoked unconditionally by the banks at any time and with expensive equity, goes too far, because banks will be forced to review the financing framework for their customers and, if necessary, to reduce them. Ultimately, from the BVR’s point of view, it is particularly disappointing that the Commission has largely refrained from providing administrative and regulatory relief for small and medium-sized banks. After the discussion about proportionality that has been going on for years, more could have been expected from the EU Commission. “Since small and medium-sized banks are already disproportionately burdened by the existing supervisory regulations, it is urgently necessary to improve the proportionality of rules in the Basel III implementation. Other countries such as the United Kingdom and Switzerland can serve as a reference serve “, emphasizes Hofmann.
Original content from: BVR Federal Association of German Volksbanks and Raiffeisenbanks, transmitted by news aktuell