This paper assesses the macroeconomic implications of the Basel III finalisation for the euro area, employing a large …-scale semi-structural model encompassing over 90 banks and 19-euro area economies. The new regulatory framework will influence … the reform, namely a transitory reduction in euro area gross domestic product (GDP) and in lending to the non …

share of non-performing loans (NPLs) on the balance sheets of euro area banks. The first is the coverage expectations for … assessment of the package is analysed via a semi-structural model, the Banking Euro Area Stress Test (BEAST). The coverage …

perspective. This approach employs a large-scale semi-structural model reflecting the dynamics of 91 significant euro area banks … and 19 euro area economies and is presented through an assessment of the stance evolution for the aggregate euro area … economy and for the individual euro area countries. Our results uncover mild tightening of the macroprudential policy stance …