The Basel III International Standards were developed in several steps by the Basel Committee on Banking Supervision to strengthen the banking system following the 2008 financial crisis, and it was finalised in 2017. The EU has already implemented some of these measures through the creation of the CRR and CRD, as a result of which the EU banking sector proved resilient during the Covid 19 crisis and helped to restart the economy by lending to economic agents. With the CRR3 and CRD6 proposals, the last major phase of the Basel III finalization package has arrived. The main elements of the package are the application of new credit risk weights, the limitation of the IRB, the phasing out the AMA, the introduction of the FRTB, the incorporation of ESG risks, and the fine-tuning of the supervisory framework.
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