The European Banking Federation (EBF) reiterated on Friday 28 May the willingness of European banks, which have so far weathered the Covid-19 economic crisis well, to continue to support economic recovery by continuing to finance businesses and households.
To achieve this, the banking industry is calling for the following “prudential decisions”: - increasing the net present value threshold for debt restructuring from 1 to 5%; - the postponement and revision of the standardised approach for counterparty credit risk (SA-CCR) to avoid an upsurge of hedging costs for European companies; - the end of the dividend suspension.
Moreover, there is a risk that the implementation in the EU of the prudential rules stemming from the ‘Basel III’ agreement will have a “significant impact on current capital ratios”, according to the EBF, which asks the European legislator to take into account “European specificities”.
Finally, European banks are calling for a regulatory test for a more holistic view of the regulatory, supervisory and resolution requirements adopted over the past decade. (Original version in French by Mathieu Bion)