The French Banking Federation (FBF) believes that the current Basel project is cumbersome and complicated to implement. Therefore, the application of the solvency ratio needs to be more flexible.
The FBF calls, among others, for a review to ease the application criteria for the different approaches, reinforce the treatment of risks linked to particular businesses such as asset securitisation, factoring, lease activities and venture capital, and ensure that all banks are subject to identical requirements from their national regulators.
Furthermore, FBF considers it vital that the European text includes no additional constraints. The scope of application must be identical to that provided for in the Basel II recommendations, and the dates for implementing the directive should be aligned with the timeframe set in the Basel II recommendations.
According to the FBF, the new solvency ratio will change the way in which banks allocate capital to their different activities, which will ultimately have an impact on the economy. It is important to ensure that no negative effects arise from this regulatory requirement
Press release
© FBF - French Banking Federation
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