Monday, June 12, 2017

BIS Issues Further LCR Guidance

Includes steps toward calibration of the LCR to address short term financing activities

Author: David Schwartz

On June 8, 2017, the Basel Committee on Banking Supervision (BIS) issued a second set of frequently asked questions (FAQs) and answers on Basel III's Liquidity Coverage Ratio (LCR). This latest guidance responds to questions and requests for clarification received from commenters to the Basel Committee’s January 2013 publication of the LCR standard. The June 8 release combines new guidance with the existing FAQs published in April 2016 to form a complete set of LCR interpretations to date. Among these interpretations are some meaningful steps toward calibration of the LCR for short term financing transactions. 

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Tuesday, May 30, 2017

Is Final Basel III Just Around the Corner?

"The output floor is the final piece of the jigsaw”

Author: David Schwartz

In speeches on April 5 and May 25, 2017, William Coen, Secretary General of the Basel Committee, hinted that final Basel III standards are “just around the corner.” Despite a setback in January 2017 in which the Committee members could not reach accord on the calibration of the aggregate output floor, Coen signaled optimism for the upcoming meeting the Committee in June. In a May 25 speech, Coen announced that ‘based on feedback from the consultative process and the results of our impact studies, the Committee has largely completed the technical work needed to revise the framework.” Despite this optimism, calibration of the output floor still remains somewhat of a sticking point, one that Coen says “is the final piece of the jigsaw.”

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Tuesday, May 2, 2017

Basel Sharpens Focus on Banking Supervision

Will also improve confidence in prudential ratios

Author: David Schwartz

The Basel Committee on Banking Supervision has announced its work program themes for 2017 and 2018 to include a greater focus on strengthening supervision by member jurisdictions. In addition, the Committee still remains dedicated to its core goals of:

 

  • finalizing its existing policy initiatives; 
  • monitoring emerging risks;
  • assessing the effects of the Committee's post-crisis reforms; and 
  • ensuring full, timely, and consistent implementation of the Committee's standards.
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Tuesday, March 21, 2017

G-20 Renews Its Commitment to Basel III

Will also keep an eye out for unintended adverse consequences.

Author: David Schwartz

 

“We reiterate our commitment to support the timely, full and consistent implementation and finalisation of the agreed G20 financial sector reform agenda."

 

In a statement issued following a two-day meeting in Baden-Baden, finance chiefs of the Group of 20 nations renewed their pledge to finalize the Basel III overhaul of global banking standards. The G-20 urged the Basel Committee on Banking Supervision (BIS) to finalize the Basel III reforms “without further significantly increasing overall capital requirements” from those previously proposed. 

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Friday, January 6, 2017

BIS Postpones Final Act of Basel III

Miss Otis regrets she's unable to lunch today.

Author: David Schwartz

In a sparsely worded press release on January 3, 2017, the Bank for International Settlements announced that the January 8 meeting of the group of central bank governors and heads of supervision (GHOS) has been postponed. At this meeting, the GHOS were to finalize long awaited rules that will determine how much capital lenders have to set aside against loans and other assets. Citing unfinished work necessary to calibrate banks' risk-weighted capital ratios, BIS chose to move finalization off for the present.  

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