Covid-19 looks set to become the banking sector’s most powerful argument yet to demand a wholesale roll-back of the Basel III framework. In a petition to the German Bundestag, MPs of the opposition Free Democratic Party (FDP) submitted a proposal – drawing, among others, on a study commissioned by the European Banking Federation (see our analysis) – that would instruct the German government to oppose key elements of the final instalment of the Basel III framework, which is due to be discussed in Brussels later this year.
In a public hearing at the Bundestag Finance Committee on July 01, Christian M. Stiefmueller reiterated why legislators should not be swayed into reversing course on financial stability. His written response is available for download on the Bundestag website.
Watch the video recording (in German):