Significance of Basel II and III to the European Banking Regulation and Supervision

European banking regulation is focused mainly on the entering conditions to the banking industry (bank licence), capital requirements that should prevent or at least mitigate the risks connected with the banking business, some supervisory issues and market discipline. However, the biggest attention is traditionally paid to the capital requirements. Only since the new millennium, the attention has been drawn more to the internal risk management, supervision and transparency requirements.
Since foundation of the Basel Committee on Banking Supervision in the 1970’s, this international forum has gained a significant position in discussions on current world banking issues and in concluding internationally recognised banking standards, implemented not only by its member states but, among others, also in a form of the EU secondary law, i.e. directives and regulations binding for the EU Member States.
This article deals with the position of the Basel Committee, its law-making powers and consequent impact on the European banking regulation.