Proposed changes to BCBS prudential framework: A view from the EU industry – Gonzalo Gasós

Mostly considered by regulators as just a finalisation of Basel III and by banking risk professionals as the implementation of a largely new Basel IV framework, the new prudential measures being considered by the Basel Committee will undoubtly have a huge impact on the European banking sector. Quite a lot had already been done with Basel III to impove financial stability in Europe. However, whatever the final outcome of discussions, the new proposals of the BCBS (revision to the standardised approach for credit risk, constraints and removal of internal models, floors based on stndardised approach, revision of the operational risk framework, …) go a big step further and will definitely bring major changes on risk assessment and monitoring in European banking institutions.

Do the contemplated new rules fit with the condition (no further significant increase in overall capital requirements) for the support given by the G20 Finance Ministers and Central Bank Governors ? What would be the real impact on the banks’ ability to finance European growth ? How would the level playing field be affected ? Are the real theats for the banking sector (low interest rates, low returns) and the economy properly tackled ? Gonzalo Gasós will help us understand what Basel IV is really about and finally what is at stake.

Gonzalo Gasós is Head of Banking Supervision at the EBF where he works since 2009. He acts as Secretary of the Banking Supervision Committee and of the SSM Strategy Group. Before joining the EBF, he held various positions in risk management and compliance at Santander Group including the responsibility as Project Officer for the cross-border implementation of Basel 2 at Abbey National and other EU subsidiaries. Previously he worked for 5 years in Accenture.