1. Translating Basel into Brussels Patrick Pearson European Commission

2. BASEL - BRUSSELS International convergence of capital measurement and capital standards – a revised framework 26-6-2004 Proposal for a Directive amending directives 2000/12/EC & and 93/6/EC on the capital adequacy of banks and investement firms (recast) • Brussels,14-7-2004 • COM(2004)

3. « SPOT THE DIFFERENCE  »

4. Proposal for a Directive of the European Parliament and of the Council amending directives 2000/12/EC & and 93/6/EC on the capital adequacy of banks and investement firms (recast) Directive of the European Parliament and of the Council amending directives 2000/12/EC & and 93/6/EC on the capital adequacy of banks and investement firms (recast)

5. KEY ISSUE: CONSOLIDATING ‘LEAD’ SUPERVISOR

6. KEY ISSUE: LEVEL OF APPLICATION / WAIVERS Capital requirements apply to all individual banks BUT waivers if criteria satisfied Capital requirements & internal processes by every ‘group’ at country level Disclosure requirements apply at EU level

7. KEY ISSUE: IMPLEMENTATION DATE SA/FIRB/BIA/SA available end 2006 AIRB/AMA available end 2007

8. TRADING BOOK Double default & Maturity Adjustment? Counterparty credit risk? Trading Book/Banking Book?

9. INSTITUTIONAL PROCESS: THE COUNCIL

10. INSTITUTIONAL PROCESS: EUROPEAN PARLIAMENT