The uncertainty about the impact of the finalised Basel III reforms, raises questions on what the impact of the reforms will be on the minimum capital requirement by EU banks? How will the potential higher capital requirements affect the activities of banks across the EU? How will the higher capital requirements affect the real economy?
The objective of this project is to assess the impact of the finalised Basel III reforms on EU banks and the real economy.
To accomplish the above-mentioned objective, the following tasks will be executed:
- Phase 1: Estimate the impact of the finalised Basel III reforms on the minimum required capital for EU banks across countries, sizes, business models and ownership types;
- Phase 2: Perform a scenario analysis on the potential implications of the finalised Basel III reforms on bank activities and the real economy.
The estimation of the impact of the reforms on bank capital is primarily based on desk research. It will require the subscription to a bank database as well as manual collection of data included in Pillar 3 reports from banks using internal models for the calibration of the minimum capital requirements. To capture the varying dynamics in the EU banking sector the impact is be measured across countries, sizes, business models and ownership types.