The chair of the Supervisory Board of the European Central Bank (ECB), Germany's Claudia Buch, considered that the implementation of Basel III reforms did not affect credit supply to the economy. Basel III is the set of international regulations that establishes stricter capital and liquidity requirements for banks.
Claudia Buch, who is German, made this assessment within the scope of her role as head of European banking supervision. The ECB is the main institution responsible for supervising the largest banks in the euro area.
Claudia Buch's position suggests that, despite initial concerns that higher capital requirements could restrict access to credit, this did not occur in practice. The Basel III reforms were implemented to strengthen the resilience of the European banking sector.
