Basel III
WHAT IS THIS? Basel III is a set of bank soundness rules drawn up by the Basel Committee on Banking Supervision in response to the financial crisis. It hikes the minimum amount of capital banks must hold, introduces new leverage and liquidity ratios, and limits the use of internal models.
Why the leverage ratio distorts market-making
Darrell Duffie argues the rule hurts market efficiency for very safe assets
EU banks fear fresh blow on Basel credit risk capital rules
Possible revision to standardised approach would favour US banks for corporate exposures
Energy hedging is down but not out
Market conditions will change, bringing liquidity back
Simulated banking system shows pros and cons of Basel III
Stability improves, but higher capital requirements also cut lending in new research
China rates swap prices diverge on spotty CVA practices
Most local banks not passing on capital charge to clients, say traders
A conflict resolution strategy for capital allocation?
A recently proposed method for capital allocation has the potential to resolve internal disputes
Regulatory fragmentation drives Basel RWA impasse
European Commissioner rejects model floors that US regulators have already imposed
Land of confusion: FRTB and the calculation burden
Sponsored feature: Quaternion Risk Management
Forget your passport: London outside the single market
UK-based banks seek simplest way to retain EU access post-Brexit
Liquidity stress testing ‘essential’, says ECB supervisor
Supervisor warns conference banks will need to shape up their Ilaap responses for 2017
UBS saves Sfr295m in capital via swaps margin change
FDIC vice-chair has warned of hidden dangers in new approach
Regulatory miasma makes life difficult for Ocwen CRO
Op risk veteran Marcelo Cruz says firm faces “absurd” quantity of rules in US mortgage market
Brexit gives banks a taste of life without AFS bond filters
Liquidity buffer valuations now key concern during stress events
The growing pull of public cloud for banks and regulators
Adoption by the FCA for Mifid II data reporting indicates public cloud satisfies regulatory, security and reliability requirements
Basel arbitrage warning leaves dealers guessing
Banks told to avoid trades that offset regulatory adjustments, but details are thin
Banks battle to preserve ‘good value’ IRB models
Improving credit risk modelling assumptions could soften Basel's push for input floors
Regulation remains top concern for US energy risk managers
Capital requirements, position limits and other rules still hampering liquidity, conference hears
Leverage puts hedge funds in the systemic-risk spotlight
Regulatory attention shifting to hedge fund users of derivatives
Sympathy for the Dimon
A lack of confidence is hobbling bank stocks – and the implications go beyond valuations
Strong banks, weak stocks: should regulation share the blame?
Analysts say regulatory risk plays a part in weak bank valuations and wobbly prices
Capital and funding
Quants propose KVA and FVA accounting framework based on Solvency II regulation
Banks to ramp up credit risk if Basel scraps internal models
Lobbyists warn banks will add more high-yield debt if forced to follow standardised approach
Nordic clearing members eliminate Skr288 billion IRS notional
Nasdaq Clearing’s first compression run to be continued twice a year
Capital sums set to drive FRTB desk decisions
Using Volcker desk structure may hurt model approval chances, banks say