Basel II – an opportunity for convergence in the EU
| Pages | 24-28 |
| DOI | https://doi.org/10.1108/13581980610644725 |
| Date | 01 January 2006 |
| Published date | 01 January 2006 |
| Author | José María Roldán |
| Subject Matter | Accounting & finance |
Basel II – an opportunity for
convergence in the EU
Jose
´Marı
´a Rolda
´n
Committee of European Banking Supervisors, Madrid, Spain
Abstract
Purpose – Seeks to present the personal viewpoint of the chairman of the Committee of European
Banking Supervision (CEBS) on the opportunities for convergence afforded by the BASEL II capital
framework.
Design/methodology/approach – Highlights some of the initiatives under way in CEBS that aim
to make the above a reality in the EU.
Findings – The success of CEBS cannot be measured against the number of publications it produces
but only on the impact of their implementation. More specifically, re BASEL II the real test will come
with full implementation of the new framework, which will trigger full application of the CEBS
agreements.
Originality/value – Coming from the chairman of CEBS, this paper carries great weight.
Keywords Banking, Regulation,European Union, Financial services
Paper type Viewpoint
Introduction
As Chair of the recently established Committee of European Banking Supervisors
(CEBS), I am often asked to comment on the difficulties of implementing the new
international capital framework, or “Basel II”, in the European Union.
I must say that, while there are certainly challenges ahead, I prefer to think of
Basel II as more of an opportunity than an obstacle. From the supervisory
perspective, I believe that Basel II actually opens up a unique chance to make
progress in delivering more consistent approaches to supervision across the EU –
something which the industry has been calling for, and which can only benefit the
EU as a whole.
CEBS has a key role to play in turning this opportunity into a reality, and I will
outline below some of the initiatives that we are taking to do just that. But before I do
so, I would like to recall the context within which we are operating, and the
implications that arise from this.
The legal context
The Basel II framework, as published by the Basel Committee on Banking
Supervision, is not a legal text and has no direct effect on banks or on banking
supervisors. Each jurisdiction that wishes to apply Basel II, therefore, has to
transpose it into its own legal or administrative framework and implement it in its
own processes and practices.
In the EU context, Basel II has been transposed into a European Directive, which
will be implemented in all member states and will apply to all banks and investment
firms in the EU. The European Commission has been closely involved in the Basel II
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1358-1988.htm
JFRC
14,1
24
Journal of Financial Regulation and
Compliance
Vol. 14 No. 1, 2006
pp. 24-28
qEmerald Group Publishing Limited
1358-1988
DOI 10.1108/13581980610644725
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