#banksonbasel: Sascha Klaus
Why would it be wrong to include green criteria in Basel III?
The banking package contains a number of new requirements regarding the definition and the risk management of sustainability risks, many of which are contentious, even though these requirements are not part of the Basel regime. The creation of a green supporting factor through the back door, as proposed by Jonás Fernández, rapporteur in the European Parliament, will not achieve the desired result. Capital backing must reflect the risk of a loan, also in future, and not wishful thinking on the part of policymakers. The banking package also needs to take this into consideration.