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 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