Germany’s CDU/CSU-Bundestagsfraktion party have suggested to deviate from a 1:1 implementation of the Final Basel III banking reform, and that the “parallel stack approach”, also recommended by Copenhagen Economics, is to be preferred.
Citing Copenhagen Economics’ 2019 report “EU Implementation of the Final Basel III Framework – Impact on the Banking Market and on the Real Economy” the paper published by the CDU/CSU acknowledges that banks potentially choose to have higher capital ratios than the bare minimum that is required by supervisors and that the actual capital need arising from the reform might therefore be significantly larger.
To read more about this story and to delve into the paper itself, please see the links below:
Learn more about the study
Read more on CDU/CSU’s website
For further information, please contact Senior Economist Jonas Bjarke Jensen