Basel III
WHAT IS THIS? Basel III is a set of bank soundness rules drawn up by the Basel Committee on Banking Supervision in response to the financial crisis. It hikes the minimum amount of capital banks must hold, introduces new leverage and liquidity ratios, and limits the use of internal models.
Treasurers highlight unintended consequences of regulation
Corporate treasurers complain about the unintended consequences of the proposed financial transaction tax, as well as clearing rules for OTC derivatives
BoE's Tucker: FPC capital powers 'won't be popular'
Attendees at ACT conference raise concerns about increased lending costs after Bank of England’s Tucker argues for powers to raise sectoral capital levels
Deleveraging fears overdone, says EBA chairman
Enria defends EBA's 9% capital buffer in New York speech
Credible capital: regulators prepare to tackle RWA divergence
Credible capital
A regulatory Catch-22: bail-in plans collide with Basel's NSFR
The funding squeeze
Banks look to cut corners on CVA computation
Cutting CVA corners
Italy could face more swap terminations
Italian politicians claim Morgan Stanley's swap termination in January will be a one-off - but dealers say Italy's debt office is subject to other clauses that could have the same effect
SIG to keep an open mind on RWA probe, says Himino
The Basel Committee’s standards implementation group has begun an investigation into RWA consistency, but chair Ryozo Himino says there might be good reasons for discrepancies
Liquidity swap activity will be driven by bank funding needs, say bankers
Banks’ long-term funding needs will drive demand for liquidity swaps with insurers
New Zealand proposes partial earlier adoption of Basel III capital requirements
New Zealand regulators have opted to bring in the capital conservation and counter-cyclical buffers ahead of the Basel Committee schedule – but market participants are unsure if this is necessary
Indian banks to provide Basel III liquidity data in advance of 2013 deadline
Reserve Bank of India tells domestic banks to start reporting aspects of Basel III liquidity strength measures from June this year – ahead of the 2013 reporting timetable outlined by the Basel Committee
Insurers look to social housing to diversify asset mix
Social enterprise
Bail-in plans could undermine Basel's NSFR
Basel III rules that require banks to issue an estimated €2.7 trillion in long-term debt could be thwarted by plans to make investors accept losses
OpRisk North America: Crisis highlighted op risk model failures, says Adachi
Model risk emerged as a key lesson from the crisis – and a significant variation in op risk modelling approaches exists today, says Sigor chair
Basel III commitment in question, says ex-committee member
The ongoing crisis in Europe is casting doubt over Basel III framework, says a former Basel Committee member
Risk Annual Summit: Bank deleveraging 'might not be cyclical'
Aircraft, shipping and project finance all set to lose out as banks seek to constrain capital consumption, panellists warn
Mitigating op risks for CCPs post-crisis
To the rescue
Risk Annual Summit: Buy-side firms call for clearing changes
Eligible collateral for CCP margin needs to be reviewed – and regulators also need to ensure the clearing exemption for some end-users is not negated by Basel capital rules, say buy-side firms
Risk Annual Summit: CVA rethink needed, says HSBC risk specialist
Market risk hedges should be recognised when calculating CVA capital charge, says HSBC market risk modelling head
Risk Annual Summit: Loan and bond markets will suffer under Basel III, say panellists
Supervisors should embrace new form of securitisation to encourage bank lending, argues Ernst & Young’s Patricia Jackson
Cutting operational risk capital through insurance
Using insurance can produce significant capital savings - but some legal problems remain
Risk Annual Summit: Deutsche credit risk head questions CRD IV timeline
Banks have nine months until elements of Basel III are due to come into force, but details of implementing legislation are still being debated