Too many questions in Basel floor plans, industry claims

While standardised rules are being revised, banks say they can't make a call on floors

Hard to measure impact of capital floor plans
Hard to assess impact of floor framework, industry claims

Big unknowns in design and methodology are making it difficult to respond to regulators' plans for a system of capital floors, industry participants claim.

The idea behind the plans is to set minimum capital requirements for banks that model their exposure, with the floor set as a percentage of the relevant standardised approach, which is essentially a regulator-set formula. In its initial consultation paper, the Basel Committee on Banking Supervision did not say where the floors would be set

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