PwC Malta hailsBasel proposals

PwC Malta has welcomed some of the provisions of the updated Basel proposals, explaining that they would help smaller banks – but the overall impact of other factors is still dependent on developments in the US.

Fabio Axisa, banking and capital markets leader at PwC Malta, said: “Europe’s move to implement ‘proportionality’ is an important step, especially for the large number of smaller institutions in the EU, including those in Malta.  This should decrease part of the regulatory burden that smaller banks have been facing.”

The European Commission published its first proposals last month for revised rules to calibrate capital and liquidity requirements, which will represent Europe’s attempt to legislate for rules being globally agreed at the Basel Committee for Banking Supervision (BCBS).

For the most part, the Commission’s proposals seek to implement the Basel III proposals with only limited differences in scope, timing and calibration, together with the first parts of what the banking industry community refers to as Basel IV.  With this update, the Commission is also introducing the concept of ‘proportionality’, so reporting and compliance burdens would be simplified for...