EBA’s Campa: reduce Pillar 2 charges to offset output floor
Bankers plead for smaller capital hit and more predictability on implementation of Basel III
European Union regulators and supervisors have touted possible reductions in discretionary capital add-ons as a way of offsetting the impact of an incoming capital floor, which is expected to increase capital requirements at EU banks significantly.
“In the EU, we should recalibrate overall capital requirements to take into account enhancements from the Basel reform,” said José Manuel Campa, chairman of the European Banking Authority, speaking at a conference on Basel III on November 12
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