Implementation of the final Basel III framework into

Implementation of the final Basel III framework into European Union law EFBS Financial Affairs Committee 16 October 2019, Prague Jonathan Pfenning

Final Basel III framework - State of Play § Final Basel III agreement in the BCBS in December 2017 § European Commissions sends Call for Advice (Cf. A) to EBA in Mai 2018 § Mr O. Castrén ( Head of Economic Analysis at EBA) reports on State of Play at the EFBS semi-annual meeting in March 2019 in Brussels § EBA publishes Report on the Cf. A in August 2019 • Recommends one-to-one transposition into European law • Does not take into account European specificities 2 © European Federation of Building Societies

Final Basel III framework – EFBS action § Sent out EFBS circular (8. August 2019) asking members feedback on EBA report § Identified two specific points of concern for Bausparkassen • One point in the field of operational risk (calculation of the services component) • One point in the field of FRTB (consequences of the new boundary between the trading book and the banking book) § Addressed those points of concern at the EBA § Will address those points of concern to the European Commission 3 © European Federation of Building Societies

Final Basel III framework – Future timeline § European Commission will start extensive consultation in October 2019 • Asks for fast and detailed feedback • Concerns should be underpinned by figures § European Commission will hold a stakeholder conference in November 2019 § European Commission will undertake an impact assessment end 2019/ beginning 2020 § European Commission will publish a legislative proposal in Q 2/ 2020 (tbc) 4 © European Federation of Building Societies

Implementation of the final Basel III framework into European Union law Many thanks for your attention! Jonathan Pfenning