This broader view of banking supervision, taking account of all its facets, translates into a number of provisions and notably introduces additional capital buffers (a capital conservation buffer, a countercyclical buffer and a buffer for systemically important financial institutions) in excess of the regulatory minimum. Basel III therefore represents a quantitative and also a qualitative leap. Given the magnitude of the changes to be made, Basel III has major repercussions on market participants, who must adapt to this new environment. These repercussions are both anticipated and desirable, but the potentially negative consequences of this reform must be kept to a minimum. In this respect, many associated risks were highlighted during its drafting and even more so recently, due to the current economic and financial difficulties. These included the risk of a rise in the cost of credit or of a credit crunch. Hence, the impact and stakes of Basel III must be carefully analysed and addressed. 2. The difficult economic environment stresses the importance of implementing Basel III in an appropriate manner but does not call into question the rationale of the reform  Without playing down the potential risks associated with the implementation of Basel III, to which the ACP pays close attention, I believe that this reform can be successfully implemented.
They may also, under a compromise text, render partly redundant and ineffective the responsibilities of supervisors of home and host countries, as well as those of micro-prudential and macro-prudential supervisors. In this context, I believe that the creation of a banking union is to be supported. It would be a major development for banking supervision in Europe, which would bring numerous benefits and would enable us to efficiently address the current difficulties. Such a development would most likely have very positive consequences in that it would be a step towards greater European harmonisation. Naturally, the benefits of such a reform would be more far-reaching but such questions go beyond the scope of today’s conference. Questions regarding the impact and stakes of Basel III will already give ample food for thought in the rich debates and discussions this morning. I wish you all a fruitful conference. BIS central bankers’ speeches  3