View event podcasts for expert views on Capital Requirements:
Vicky Ford MEP
- Simon Hills, British Bankers’ Association
- Gonzalo Gasós, European Banking Federation
- Edward Bowles, Standard Chartered
policy focus-
capital requirements: how best to balance stability with competitiveness?
On 11 January, hanover organised a policy briefing event on capital requirements in Brussels, attended by over 25 industry stakeholders. Speaking at the event were Mario Nava, Head of Unit for Banking and Financial Conglomerates within DG Markt, Vicky Ford MEP and Simon Hills, Executive Director of the Prudential Capital and Risk Team at the British Bankers Association.
During the debate, participants outlined their priorities for the dossier ahead of its publication. Mario Nava referred to the need to strengthen rules on capital, liquidity and leverage ratios as well as the need to implement the new rules at a progressive pace. He later noted that he was pleased to see that guidance from the Basel Committee on the new rules has gradually come into line with the Commission’s position throughout 2010. Simon Hills stressed the key messages from industry, including the need for a sensible transition and observation period and for MEPs in particular to better understand banks’ role in lending to businesses and individuals. Vicky Ford MEP stressed the point that amendments to the legislative must avoid national protection from disclosure and transparency and outlined some of areas of contention in Othmar Karas’ own initiative report on capital requirements which was concluded in September.
The debate provided an opportunity for attendees to voice their questions and concerns to panellists to help frame the debate ahead of publication of the proposals, expected before the summer. Attendees were comforted by the recent news that the Commission will undertake an impact assessment on the cumulative impact of upcoming legislation. There was also a general consensus that implementation of Basel III rules in the United States and other major economies would come into effect, unlike the case with Basel II rules. Also discussed during the Q&A was the removal of counter cyclical buffers, the consequences of Members States going above and beyond minimum capital requirements, the treatment of trade finance and the impact of proposals on Systemically Important Financial Institutions (SIFIs).
Running throughout the debate, was the consensus that the financial services industry will need to coordinate its lobbying efforts when the dossier moves to the European Parliament and Council to ensure that arguments are as impactful as possible.