EBA 'abolishing' two-pillar Basel framework, critics say

Banks would have to hold 56% equity against any additional Pillar II capital – an 'abolition' of the existing framework, says the DSGV

European Banking Authority
European Banking Authority headquarters

New European Banking Authority (EBA) guidelines meant to harmonise the treatment of risks not covered by existing international rules are being decried as an "abolition" of the existing two-tier framework drawn up by the Basel Committee on Banking Supervision. For the first time, the guidelines tell supervisors what kind of capital can be used to cover these risks.

"That would in the end be the abolition of Pillar II as intended by the Basel Committee," says Martin Switaiski, a senior adviser on

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