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The BIS and the ECB

How a Basel Standard Becomes a Rule

This is the channel that is real. It runs through a legislature, and it is where the EU says no.

10 min95 XP available4 challenges

Put these in order

Put the chain from a Basel agreement to a rule that binds a Spanish bank.

Earliest cause at the top

  1. Parliament and Council negotiate, amend and adopt it

    This is where the standard can be changed, delayed or watered down

  2. The ECB supervises euro area banks against the resulting EU law

    Against the regulation as adopted — never against the Basel text

  3. The European Commission proposes legislation to implement it

    The banking package — CRR3 and CRD6

  4. The Basel Committee agrees a standard

    Hosted at the BIS, made up of supervisors from member jurisdictions

  5. The standard binds nobody, anywhere

    It is an agreement between authorities, not a law

Answer to continue.