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.
Concern over accuracy of RWAs grows
A weight on their minds
The complexity of client clearing
Client clearing complexity
Equity should be included in LCR – Risk.net poll
Equity should be included in Basel III liquidity coverage ratio, say respondents
European stress tests not complete; EBA’s Enria
European Banking Authority chief says speculation on results of European stress test are “completely unfounded”
Credit Risk 2011: Basel III overreaching into macro-prudential policy, say panellists
Basel III counter-cyclical buffer a misguided, macroeconomic tool, say industry figures
Basel Committee responds to RWA dispute
Roldán says the standards and implementation group of the Basel Committee will investigate risk-weighted assets
OpRisk Asia: regulatory change bigger than it looks for operational risk
Regulatory reforms seem to have left operational risk untouched, but in reality they mean substantial changes
Basel Committee will not impose CoCo requirement for Sifis
Basel Committee proposes a staggered common equity capital surcharge for systemically important banks, but steers clear of contingent capital
Mervyn King lands three BIS roles; new BCBS chair named
Bank of England governor will chair the Basel Committee's oversight body. The committee itself will be chaired by Stefan Ingves, governor of Sweden's central bank
FSA's Turner: RWA divergence would undermine Basel III
FSA chair highlights growing concern about foundation of risk-based regulatory capital system
Excessive capital requirements will make markets more chaotic – Myron Scholes
Nobel winning quant makes the case for market-making as a stabilising force and a source of returns
Council of Europe pushes full implementation date of Solvency II back to 2019
Full impact of Solvency II’s interest rate term structure will not be felt until seven years after the directive’s introduction
Risk & Return Brasil: Supervisors need to be more curious, says Maia
Authorities should put less faith in numbers and what they are told by banks, says top Brazilian supervisor
LCR should include equity, says ACP’s Nouy
Basel III liquidity coverage ratio should admit equities with significant haircuts, says Danièle Nouy at the Autorité de Contrôle Prudentiel
Basel III liquidity rules won't be watered down in Europe, says ACP's Nouy
Autorité de Contrôle Prudentiel secretary-general Danièle Nouy says looser language in the CRD IV draft won't ultimately mean weak rules in Europe
Basel Committee continues to reject equity for the LCR
Equities do not have the necessary characteristics to be included in the liquidity coverage ratio, says general secretary Stefan Walter – but some banks disagree
Basel III liquid asset definitions loosened in CRD IV draft
Draft legislation seen by Risk contains less prescriptive language on what counts as an eligible liquid asset under the liquidity coverage ratio
Dealers push for further CVA amendments under Basel III
Adjusting the adjustments
Supervisors seek to manage shadow banking risks
Chasing shadows
Asia’s banks move to meet new capital and liquidity rules
A capital plan
Industry models not sufficiently developed to calculate CVA charge, says Basel Committee
Basel Committee sticks to its decision not to allow banks to use their own models to calculate the CVA capital charge under Basel III
US regulators uneasy with Collins Amendment
Bank supervisors echo industry concerns about Dodd-Frank capital and leverage rules
Banks look to offload structured credit assets as prices recover
Making good on bad assets
Banks wary of uneven application of Basel III bank capital rules
Battle over Basel