Finance Watch publishes a critical analysis of a report on the EU implementation of the final Basel III framework by Copenhagen Economics for the European Banking Federation. It aims at balancing the public debate around the importance of sufficient capital requirements for the benefit of European societies and economies.
Fundamental questions raised by Finance Watch about the report from Copenhagen Economics commissioned by the European Banking Federation:
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Level playing field between US and European banks: where is the surprise in the fact that an output floor that sets a floor for capital requirements calculated under internal models at 72.5% of those required under standardised approaches has more impact on European banks than on US banks, given the fact that US banks are already effectively subject to an output floor at 100%? Isn’t the uneven playing field between US and European banks playing today in the direction opposite to the one suggested by the European Banking Federati