We are proud to announce the publication of our latest investigation into the Basel III voluntary regulatory framework.
Prepared on behalf of the European Banking Federation, the report assesses the reforms that are necessary for European banks to raise additional capital and how this is affected by the Covid-19 crisis.
We estimate that the Final Basel III package will lead to a capital need within the EU banking sector of some EUR 170-230 bn., an increase that comes on top of the COVID-19 crisis which has also put pressure on the capital of #Europeanbanks.
The International Monetary Fund estimates that the crisis could impact capitalisation by as much as EUR 100 bn., the majority of which stemming from increased credit losses throughout the crisis. In combination with the fact that banks often are expected to comply with new regulation within a 2-3 year period, this could bring the total capital needed for the EU banking sector over the coming years to EUR 330 bn.
Learn more about the report
For further information, please contact Senior Economist Jonas Bjarke Jensen