The European Banking Authority changes Basel III monitoring to be mandatory

The European Banking Authority (EBA) is changing the Basel III monitoring exercise from being voluntary to a mandatory exercise.

This change, which will be effective from December 2021, comes from a need to expand the sample to more jurisdiction and credit institutions, in a bid to make it more representative, it said.

With this change, the EBA hopes it will be able to effectively represent the interests of EU institutions in the Basel Committee on Banking Supervision and offer informed opinions and technical advice to the European Commission, European Parliament and the Council on the  implementation of BCBS standards.

The initiative brings a clear, transparent and fair methodology on how institutions should be included in the sample and guarantees enhanced stability of the sample.

Competent authorities and institutions of the Member States will also benefit from this decision, as they will reduce the frequency of reporting Basel III data.

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