By Andreas Kissler
BERLIN (Dow Jones)–The German banking sector (DK) strongly supports the European banking sector’s demand to give institutions more time to implement the so-called EU banking package (CRR 3). Among other things, the package intended to implement the extensive regulations for the finalization of Basel 3 in the European Union (EU). According to current plans, these should be implemented by institutes from January 1, 2025. According to its own statements, DK had already expressed itself in the spring in favor of granting institutes a period of implementation of 18 months after publication of the final legal texts.
“Unfortunately, the legislative process continues to be delayed,” said Daniel Quinten, board member of the Federal Association of German Volksbanks and Raiffeisenbanks (BVR) and this year’s DK leader. “If the extensive rule changes were implemented as planned, institutes and their service providers would no longer have sufficient time for implementation, even if the final texts were published promptly.” In the current situation, publication in the EU Official Journal is not expected for at least six months. Furthermore, the European Banking Authority must process more than 100 mandates given to it by the banking package.
A major challenge in this context is that the notification forms urgently needed for notification under the new rules will only be available at a very late stage. The public consultation hasn’t even started yet. According to DK, the EU would follow the example of important international financial centers, such as the US and the UK, with a later start of implementation. They have already announced that Basel 3 will not be applied before July 1, 2025. “We therefore fear significant competitive disadvantages for EU institutions compared to their competitors,” Quinten said. He called on the federal government to actively support the demand for a delay.
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November 1, 2023, 05:58 ET (09:58 GMT)