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By Antoine KREMER, ABBL
It was finalised in December 2017, but when the Basel agreement took its first milestone in the transposition into EU law last week (27 October 2021), it was already a year behind the original schedule. Indeed, COVID is the culprit as many readers would have guessed.
Beyond the timeline, the content is very much what would have been expected with several adaptations to European specificities. The famous output floor of 72.5% of the standardised approach is very much in there, and its implementation very close to the literal interpretation despite prolonged efforts of the banking industry to convince the Commission of the merits of a parallel stack rather than a single stack. The floor will be gradually implemented...
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