Basel capital floor faces credit risk eclipse

Impact of capital floor depends on new credit risk rules and changes to treatment of provisions

risk 0717 basel gods stephen lee
Stephen Lee, NB Illustration

Recent leaks from the tortured attempt to finalise bank capital standards made it look like everything had been figured out, save for the awkward question of how far to limit the savings offered by internal risk models. In reality, experts warn, calibrating that floor will not mean much until regulators settle technical questions about the standardised calculations on which it is based.

Regulators failed once again to reach an agreement during meetings on June 14 and 15, after European nations

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: