#banksonbasel: Dr. Georg Reutter

Dr. Georg Reutter President of vdp and Chairman of the Board of Managing Directors DZ HYP

What are the criticisms of Basel III?

The Pfandbrief banks are in favour of a globally uniform supervisory approach and therefore support the reform of Basel III in Europe in principle.

The vdp advocates an appropriate shaping of the Basel III capital regime that does not go beyond what was agreed in Basel, does not further restrict the economic performance of the banking system where there is no need, and does not additionally impair the real economy.

Although the European Commission has made recognisable efforts to take European specificities into account, the Commission’s legislative proposal on implementing the Basel III regulations would result in a gold-plating of the Basel requirements and place a heavy burden on banks’ capital. Proposals like those made by ECON rapporteur José Fernàndez envisage tightening the rules even further, which would result in a disproportionate additional burden for the banking industry.