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European financial services update

The Financial Services team is engaging in Europe on the implementation of Basel III and EBA loan origination guidelines.

07 Nov 2019, 2 min read

The next phase of the implementation of Basel III

The implementation of Basel III in the EU is set to become one of the most prominent legislative proposals in the upcoming European Commission and will likely have significant impact on banks operating in the EU. The CBI is calling on regulators to explore these reforms carefully and ensure that overlaps or inconsistencies with previous reforms are avoided.

Getting the implementation of Basel III right would maintain a level playing field and free up cross-border capital flows to create the Capital Markets Union the EU and business desire. The CBI are working closely with BusinessEurope to ensure that members are represented on the EU stage.  We are also looking to respond to the Commission’s public consultation on Basel III implementation. If you are planning on responding to this consultation or would like to help shape the CBI’s response, please contact Megan Griffith Otway.

EBA loan origination guidelines

The CBI are concerned that the EBA’s guidelines on loan origination and monitoring could create challenges for many firms operating in the EU. The CBI believes that the EBA’s guidelines are prescriptive, lack flexibility, and are not sufficiently forward-looking to encourage innovation. The guidelines are designed for high value lending, making them more onerous for small-scale lending, often provided by smaller firms and/or new market entrants. CBI in collaboration with BusinessEurope sent a letter to the EBA to highlights business concerns.

For more information on these issues or to understand more about how the CBI works with BusinessEurope at EU level, please contact Megan Griffith-Otway.