US Basel III endgame: a credit risk calibration conundrum
If regulators want to finalise the rules, they should strip out gold plate and cancel a haircut
This is the first of two comment articles on the credit risk components of the proposed US Basel III endgame rules. The second article can be found here.
In July 2023, US agencies issued a proposal known as the Basel III endgame capital rules for banks, based on the Basel Committee on Banking Supervision’s 2017 finalisation of the post-crisis framework. The US version deviated substantially from
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