IIF board express concerns over different time schedules for implementation
Different schedules for implementing the Basel Accord will present complex issues for firms operating on both sides of the Atlantic, according to the International Institute of Finance (IIF). The main problem for many firms will be operating under two different systems.
Other issues range from the decisions on the regulatory capital levels that the Basel Committee will finally determine and home-host and cross-border jurisdictional issues. The IIF stressed that these issues need to be addressed as soon as possible to ensure proper implementation. Referring to a recent meeting with regulators, Cees Maas, vice-chairman and treasurer of the IIF board, said: “Our concerns are well understood by the regulators. It was well recognised that the uncertainty over implementation timing threatens the overall momentum in resolving numerous outstanding technical issues relating to the Accord.”
The IIF, the accounting task force of the Basel committee and the international accounting standards board, recently met to discuss developing approaches that would allow for provisioning methodology acceptable to banks, auditors and regulators, simplifying current hedge accounting rules and the increasing likelihood that the US will accept International Financial Reporting Standards (IFRS) without the need for costly reconciliations that are currently imposed by the Securities and Exchange Commission (SEC). Further meetings are scheduled for later this year.
In his closing comments, Maas stated that the IIF’s work is just starting: “We need to strive to work together with the regulators to see that regulations are developed in such a way that they are able to keep pace with rapid changes in the market-place, recognise the global character of the financial services business and achieve accepted regulatory goals both effectively and efficiently.”
BaselAlert.comOnly users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Banks will not be frowned upon for discount window borrowing – Fed official
Risk Live: more banks have completed paperwork to access Fed lending facility than a year ago
Capital One puts OCC’s tough stance on mergers to the test
Proposed Discover deal should be approved but will go under the microscope, ex-regulators say
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
EU banks fear green asset ratios paint an unfair picture
Industry lobbyist clashes with lawmaker over usefulness of new sustainability disclosure
EU watchdogs to launch prop trader capital review in April
Prop traders say bank-style IFR rules are driving them out, but doubt EBA will suggest changes
Investors say new SEC disclosures may sit on shelf
Advisory committee questions value of rule 605 changes, even for retail investors
CFTC hears ‘call to action’ from swaps end-users on Basel III
Commissioner Pham mulls engaging with prudential regulators over capital hit on clearing
Iosco gears up for ‘intensive work’ on AI regulation
Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance
Most read
- As FCMs dwindle, regulators fear systemic risk
- Top 10 operational risks for 2024
- Top 10 op risks: AI fears drive cyber risk to record high