Commission recommend proportionality on banking regulation

Commission recommend proportionality

Regulation now dominates banks' priorities and there is no sign of any let up.

1000

Also on KPMG.com

The European Commission has today proposed a substantial set of revisions to several major pieces of banking regulations including the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD4). Commenting, Steven Hall, Banking Partner, KPMG, says:

“Today we see yet another layer of potential changes to Basel regulations which themselves are not all yet finalised. The proposed revisions introduce some welcomed proportionality in certain areas including a softening of the higher capital requirements against market risks for a 3 year period after application. This is in line with the EU having previously acknowledged the negative impact higher capital holdings could have on jobs and growth. If implemented as currently proposed we predict that Basel 4, in its entirety, could eventually add an extra €350bn to banks’ capital requirements.

“Regulation now dominates banks' priorities and there is no sign of any let up. Any relief gained from today's proposals is more than offset by the considerable amount of technical standards yet to be published which is making full implementation and planning difficult for European banks. I don’t expect Brexit negotiations to alter the course of these regulations in the UK as the PRA and UK banks will want to continue to meet the highest global standards.”

-Ends-

For further information please contact:

KPMG press office: +44 20 7694 8773

 

Notes to editors:

About KPMG

KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
 

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG has launched a state of the art digital platform that enhances your experience and provides improved access to our content and our people, whatever device you are on.

 
Read more