ABA hits out at minimum capital floor proposals

Australian banks say minimum floor will reduce risk sensitivity of the Basel framework

australian-dollars

The Australian Bankers' Association (ABA) has slammed plans to impose a minimum capital floor, which would force banks to hold a certain amount of capital even if their internal model calculations suggest that they could safely hold less.

The approach suggested by the Basel Committee for Banking Supervision could potentially reduce the benefits from using an internal model, since calibration of the capital floor would be based on the standardised approach.

Responding to a consultation on the

Only 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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: