Reform of EU Banking Capital and Liquidity Requirements

Summary

Proposed amendments to EU banking regulations to implement Basel III standards, including new leverage and stable funding ratios.
10 18.01.2021
Other
lawyer
finance
economy
european union
monetary economics
public administration
administrative reform
business and competition
public finance and budget policy
financial institutions and credit

Key points

  • Introduction of a mandatory leverage ratio to act as a backstop against excessive debt building in banks.
  • Implementation of the Net Stable Funding Ratio (NSFR) to ensure long-term funding stability.
  • New capital requirements for globally significant banks, including a specific surcharge.
  • Establishment of a definition and simplified rules for small and non-complex institutions to reduce compliance costs.
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