Standards Comparison

    EN 1090

    Mandatory
    2009

    European standard for steel/aluminium structural execution and CE marking

    VS

    Basel III

    Mandatory
    2010

    Global framework for bank capital, leverage, liquidity standards

    Quick Verdict

    EN 1090 mandates CE marking for structural steel/aluminium via FPC certification, enabling EU market access for fabricators. Basel III enforces bank resilience through capital, leverage, and liquidity rules. Fabricators comply for sales; banks for stability and supervision.

    Structural Metalwork

    EN 1090

    EN 1090 Execution of steel and aluminium structures

    Cost
    €€€€
    Complexity
    High
    Implementation Time
    6-12 months

    Key Features

    • Mandatory CE marking via FPC certification
    • Risk-based Execution Classes EXC1-EXC4
    • Factory Production Control system requirements
    • Welding quality aligned with ISO 3834
    • Full material traceability and NDT inspection
    Financial Risk Management

    Basel III

    Basel III: Finalising post-crisis reforms

    Cost
    €€€
    Complexity
    Medium
    Implementation Time
    18-24 months

    Key Features

    • Higher CET1 capital minimums and quality requirements
    • Non-risk-based leverage ratio as backstop
    • Liquidity Coverage Ratio for 30-day stress
    • Net Stable Funding Ratio for structural resilience
    • Output floor constraining internal model RWAs

    Detailed Analysis

    A comprehensive look at the specific requirements, scope, and impact of each standard.

    EN 1090 Details

    What It Is

    EN 1090 is a harmonized European standard family (EN 1090-1, -2, -3) for execution and conformity assessment of structural steel and aluminium components. It implements the EU Construction Products Regulation (CPR), enabling CE marking for load-bearing parts in construction. Primary purpose: ensure controlled fabrication, welding, tolerances, and inspection via a risk-based approach using Execution Classes (EXC1-EXC4).

    Key Components

    • **EN 1090-1Conformity assessment, Factory Production Control (FPC) certification by Notified Body.
    • **EN 1090-2/-3Technical rules for steel/aluminium (materials, welding per ISO 3834, NDT, corrosion protection).
    • Core: Traceability, tolerances, inspection scaled by EXC; certification model with initial audits and surveillance.

    Why Organizations Use It

    Mandated for EU market access; reduces liability, rework, ensures traceability for failures. Builds stakeholder trust, unlocks tenders, differentiates via certified quality.

    Implementation Overview

    Phased: gap analysis, FPC build, welding quals, NB certification (3-12 months). Applies to fabricators EU/EEA-wide; requires ongoing surveillance.

    Basel III Details

    What It Is

    Basel III is the international prudential regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-global financial crisis. It aims to strengthen bank resilience by enhancing capital quality and quantity, constraining leverage, and ensuring liquidity buffers. The risk-based approach combines standardized and internal models with non-risk metrics.

    Key Components

    • **Pillar 1Minimum capital ratios (CET1 4.5%, Tier 1 6%, Total 8%), plus buffers (2.5% conservation, countercyclical, G-SIB); leverage ratio (3%); LCR and NSFR liquidity standards.
    • **Pillar 2Supervisory review via ICAAP and stress testing.
    • **Pillar 3Enhanced disclosures for RWA comparability and distribution constraints.
    • Output floor limits internal model benefits; no central certification, national implementation.

    Why Organizations Use It

    Banks implement for mandatory regulatory compliance via domestic laws, reducing systemic risk and model over-reliance. Benefits include improved solvency, funding stability, market confidence, and strategic balance-sheet optimization amid jurisdictional variations.

    Implementation Overview

    Phased enterprise transformation: gap analysis, data/system upgrades, model governance, training. Targets internationally active banks globally; involves parallel runs, traceability matrices, supervisory engagement. Ongoing audits via RCAP and Pillar 3 reporting.

    Key Differences

    Scope

    EN 1090
    Execution and conformity of steel/aluminium structures
    Basel III
    Bank capital, leverage, liquidity requirements

    Industry

    EN 1090
    Construction, metal fabrication (EU/EEA)
    Basel III
    Banking and financial institutions (global)

    Nature

    EN 1090
    Harmonized standard for CE marking (mandatory)
    Basel III
    Prudential framework with national implementation

    Testing

    EN 1090
    FPC certification, AVCP by notified bodies
    Basel III
    ICAAP stress tests, supervisory review

    Penalties

    EN 1090
    Market exclusion, no CE marking
    Basel III
    Fines, capital add-ons, business restrictions

    Frequently Asked Questions

    Common questions about EN 1090 and Basel III

    EN 1090 FAQ

    Basel III FAQ

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