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Central Bank of Malta among others calling on EU to comply with Basel III

During the autumn, the European Commission will publish a proposal for updated capital adequacy rules for banks within the EU. A joint letter now urges the EU Commission to stick to the Basel III agreement.

In a joint letter, 25 national central banks (including the Central Bank of Malta) and financial supervisory authorities from 20 member states within the EU are now calling for the European Commission to ensure that the proposal on updated capital adequacy rules for banks in the EU follows the global agreement known as Basel III. More precisely, we who are signing the joint letter wish to particularly emphasise that the output floor for risk-weighted assets and the standard method for credit risk should comply with the international agreement and that the EU should not introduce any EU-specific deviations from the rules. Deviating from the Basel agreement could have a negative impact on confidence in both the European banking sector and the EU regulatory framework. This in turn risks leading to negative consequences for the banks and the economies in general. It is therefore important that the global agreements are met in full, on time and in a consistent manner.

Please read joint letter here.

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