Basel III Reforms: Political Agreement Reached

Trilogues have successfully concluded on the Basel III reform package. While the provisionally-agreed text is not yet available, the EU Council confirmed this morning that agreement has been reached on:

• how to implement the output floor (the key sticking point during the trilogues),
• improvements in the areas of credit risk, market risk and operational risk (with a proportionate approach to be taken in respect of small and non-complex institutions),
• a harmonised fit and proper framework in respect of members of institutions' management bodies and key function holders, and a minimum cooling-off period for staff and members of governance bodies of competent authorities before they can take up positions in supervised institutions,