16:50 - 2.11.2021
November 2, Fineko/abc.az. At the initial stage in January 2030 the average impact of the Basel III rules on the capital of European Union’s banks will be reduced by about half, ABC.AZ informs with reference to the report of international rating agency Fitch Ratings.
According to the document, the proposals reduce the impact of restrictions on banks' internal models by offering significant discounts on transitional capital until the end of 2032, as well as delaying the launch of the application for two years until 1 January 2025. If the proposals are approved next year, local banks will have a 10-year "runway" to prepare for the new regime.
This step should make it easier for banks to manage their initial exposure to capital. Nevertheless, by the end of 2032, that is, about 3 years after the end of the first stage, the potential impact on capital for EU banks will increase with the expiration of certain benefits.
