The ICC Banking Commission conducted its final meeting of 2024 virtually via Teams on 20-21 November. Four separate portions of the event open to Banking Commission members and ICC National Committee representatives took place.
According to published reports, the EU appears to be on a path for abandoning a planned tenet of Basel reforms which would raise the credit conversion factor (CCF) from 20% to 50% for off-balance sheet products such as performance bonds, guarantees, and standby letters of credit.
In a 24 January 2023 press release, the European Parliament announced its Economic and Monetary Affairs Committee voted to finalize the Capital Requirements Regulation (CRR) and Directive (CRD) for implementation of Basel III reforms in Europe, while avoiding a significant increase in overall capital requirements for the EU banking system by maintaining the CCF at 20% for off-balance sheet trade finance instruments.
