What is happening?
The European Commission (EC) recently released its banking package, which translates Basel III into the Capital Requirements Regulation and Directive (CRR3/CRD6). The EU’s interpretation is very much a case of delaying and diverging from aspects of the Basel text. For instance, the EU aims to have much of it implemented by 2029 rather than 2027. This will certainly not please the Basel Committee on Banking Supervision as this is two years after its desired deadline. They believe these reforms should be implemented as quickly as possible to better safeguard the banking system for the next crisis.
