26 June 2023

New bank capital regulations to push up costs

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

  1. What are the latest reforms to the EU’s Capital Requirements Directive and Regulation known as?

  2. How many pages are there in the latest Basel proposals?

  3. When is the implementation deadline for the reforms?

  4. Which organisation signed off the reforms in 2017?

  5. Which of the following statements are correct? Statement 1, national competent authorities are responsible for implementing the principles, or statement 2, individual banks are responsible for implementing the principles

  6. Which of the following statements are correct? Statement 1, the ‘model’ approach to calculating risk weights is permitted, or statement 2, the ‘standardised’ approach to calculating risk weights is permitted

  7. By how much might the reforms reduce SME lending in the UK?

  8. What is likely to happen if the UK’s Prudential Regulation Authority abolishes the SME Supporting Factor?

  9. In which areas do the European Parliament and the Council of the European Union still have different positions?

  10. Once adopted, roughly how long will banks have to implement the new rules?