Basel III

Derivatives, Repo, Securities Lending

Basel III, Basel IV, OTC derivatives, Repo, securities finance transactions, Securities Lending, topstory

The cost of balance sheet from different types of financial transactions that have a similar economic impacts drives how business gets done. In this report, Finadium delves into the Leverage…

Assessing the benefits of loosening Dodd-Frank’s Collins Amendment (Premium)

August 10, 2020

Basel III, Federal Reserve, Regulatory, US

Basel III, Collins Amendment, Dodd-Frank, Federal Reserve, topstory, US, US Senate

US Republican Senators and the Federal Reserve are interested in changing Dodd-Frank’s Collins Amendment. The left is outraged that banking rules could be eased. What’s the right thing to do…

Will Basel IV’s complexity mean the end of internal market models? (Premium)

June 18, 2020

Basel III, Regulatory

Basel III, Basel IV, FRTB, internal models, topstory

Basel IV and its national transpositions will bring a new level of complexity and force standardization on global banking rules for jurisdictions that adopt the package, including the Fundamental Review…

The steepening slope of financial deregulation (Premium)

April 13, 2020

Regulatory

Bank of Japan, Basel III, EU, Federal Reserve, topstory, US Treasuries

We’re expecting that one outcome of the COVID-19 epidemic will be looser bank balance sheet regulations that may ultimately derail the Basel III framework. Basel III was already strained before…

Japanese regulators plan to exempt central bank holdings from bank leverage ratios

April 8, 2020

Bank of Japan, Basel III, Japan, Leverage Ratio

Twelfth Meeting of the “Council for Cooperation on Financial Stability” On April 8, 2020, the Financial Services Agency (FSA) and the Bank of Japan (BOJ) held the twelfth meeting of…

Basel Committee says that as of June 2019, large banks were on track for Basel III

April 8, 2020

Basel Committee, Basel III, monitoring report

Basel III monitoring results based on end-June 2019 data published by the Basel Committee Prior to Covid-19, large internationally active banks made further progress towards meeting fully phased-in final Basel…

Basel Committee postpones Basel III implementation

March 30, 2020

The Basel Committee’s oversight body, the Group of Central Bank Governors and Heads of Supervision (GHOS), has endorsed a set of measures to provide additional operational capacity for banks and…

Bank of England actions to combat coronavirus downturn

March 20, 2020

Bank of England, Basel III, coronavirus

Reuters: The Bank of England promised 200 billion pounds of bond purchases [Covid Corporate Financing Facility (CCFF)] and cut its key interest rate to 0.1% in a second emergency move…

BIS: Variability in risk-weighted assets: what does the market think?

February 26, 2020

Basel III, BIS, RWA

BIS Working Papers No 844 by Edson Bastos e Santos, Neil Esho, Marc Farag and Christopher Zuin Focus The pre-crisis regulatory framework provided banks with a large degree of discretion in determining…

Basel Committee reports on Basel III implementation progress

October 17, 2019

The Basel Committee on Banking Supervision has today issued the Seventeenth progress report on adoption of the Basel regulatory framework. As noted by the Group of Central Bank Governors and…

Basel Committee says that Group 1 banks are €23.5 billion short for final Basel III minimums

October 2, 2019

Basel Committee, Basel III, monitoring report

This report presents the results of the Basel Committee’s latest Basel III monitoring exercise, based on data as of 31 December 2018. Through a rigorous reporting process, the Committee regularly…

Frequently asked questions on the Basel III standardised approach for operational risk

August 14, 2019

Basel Committee, Basel III, operational risk

The Basel Committee on Banking Supervision finalised the the new standardised approach (SA) for operational risk capital, as published in the final Basel III standards in December 2017. To promote…

Financial Stability Institute: Proportionality under Pillar 2 of the Basel framework

July 8, 2019

Basel III, Financial Stability Institute, Pillar 2

Pillar 2 of the Basel framework aims to ensure that the minimum Pillar 1 capital and liquidity requirements are better aligned with a bank’s overall risk profile. Pillar 2 accommodates…

EBA sees European bank Basel III shortfall at EUR 135.1 billion

July 3, 2019

Basel III, EBA, Europe

The European Banking Authority (EBA) presented today, during a public hearing, the results of its Basel III implementation assessment, which includes a quantitative impact study (QIS) based on data from…

Finadium: The US SA-CCR, Derivatives and Securities Finance Competition

May 13, 2019

Basel III, Regulatory, US

Basel III, CEM, SA-CCR, securities finance, topstory

New US balance sheet rules for OTC derivatives come into force in January 2020. The US Standardized Approach for measuring counterparty credit risk, better known as SA-CCR, applies Basel III…

Basel Committee reports global progress on Basel III but limited NSFR adoption

May 8, 2019

The Basel Committee on Banking Supervision today issued the Sixteenth progress report on adoption of the Basel regulatory framework. As noted by the Group of Central Bank Governors and Heads…

Basel Committee issues a consolidated version of its standards

April 9, 2019

Today the Basel Committee on Banking Supervision launched a new section of its website that sets out a consolidated version of its global standards for the regulation and supervision of banks.…

Basel Committee publishes follow-up reports on Basel III implementation assessments

April 1, 2019

The Basel Committee on Banking Supervision has published overviews of follow-up actions taken or planned by member jurisdictions as of end-2018 to address deviations from the Basel standards identified as…

Basel III Monitoring Report released – March 2019

March 20, 2019

This report presents the results of the Basel Committee’s latest Basel III monitoring exercise, based on data as of 30 June 2018. Through a rigorous reporting process, the Committee regularly…

ICMA supports daily leverage ratio calculations but asks for targeted refinements to support repo

March 18, 2019

Basel III, ICMA, Leverage Ratio, Repo

ICMA ERCC responds to BCBS consultation on leverage ratio disclosure March 13 2019 The ICMA ERCC has today responded to a consultative document published by the Basel Committee on Banking…

Fed blog suggests high bank reserves are better for financial stability

February 20, 2019

Basel III, Federal Reserve, Liberty Street Economics, Liquidity

Stressed Outflows and the Supply of Central Bank Reserves Ryan Bush, Adam Kirk, Antoine Martin, Phil Weed, and Patricia Zobel Since the financial crisis, banking regulators around the world have…

Basel Committee seeks to reduce window dressing in the Leverage Ratio

December 13, 2018

Basel Committee, Basel III, Leverage Ratio, window-dressing

The Basel III leverage ratio standard comprises a 3% minimum level that banks must meet at all times, a buffer for global systemically-important banks and a set of public disclosure…

Basel Committee publishes Pillar 3 disclosure requirements – updated framework

December 12, 2018

Basel Committee, Basel III, Pilar 3

The Basel Committee on Banking Supervision has published today updated Pillar 3 disclosure requirements. These requirements, together with the updates published in January 2015 and March 2017, complete the Pillar…

Europe readies for CRD-V (Premium)

November 14, 2018

Basel III, Europe, Regulatory

Basel III, CRD-V, Europe, Leverage Ratio, topstory

The European Parliament and the European Council are in discussions to amend the Capital Requirements Directive and Regulation rules (CRD-IV) to create CRD-V. This latest iteration recognizes recent Basel Committee…

Basel Committee publishes Basel III annual progress report

October 29, 2018

This updated progress report provides a high-level view of Basel Committee members’ progress in adopting Basel III standards as of end-September 2018. It focuses on the status of adoption of…

Basel Committee Monitoring Report starts to look at compliance with final Basel III minimum requirements

October 4, 2018

Basel III, monitoring report

Basel III monitoring results published by the Basel Committee Fully phased-in final Basel III capital shortfalls more than 70% lower for large internationally active banks compared with end-2015 All banks…

Basel Committee surveys market on interactions of different regulations

July 19, 2018

Stronger regulatory requirements have prompted banks to steadily increase their capital since the financial crisis. To understand how banks would adjust to higher capital requirements if they did not meet…

Global systemically important banks: revised assessment methodology and the higher loss absorbency requirement

July 6, 2018

Alex Tonhazy

Basel Committee, Basel III, GSIB

The Basel Committee on Banking Supervision published today the Global systemically important banks: revised assessment methodology and the higher loss absorbency requirement. The revised methodology is expected to be implemented in…

BIS warns on bank window-dressing of repo at reporting periods

June 26, 2018

News and Notes, News and Notes – Fintech

Bank for International Settlements, Basel III, window-dressing

The Basel III leverage ratio is reported based on quarter-end figures in some jurisdictions, but is calculated based on daily averages during the quarter in others. It’s an example of…

No one is happy about US deregulation except these people (Premium)

April 24, 2018

Basel III, Dodd-Frank, ECB, Federal Reserve, Regulatory, US

Basel III, deregulation, Dodd-Frank, ECB, House, Senate, topstory, US

As US deregulation moves into gear, international regulators are voicing their deep concern with the breakdown of the attempted finalization of Basel III. Meanwhile, the US Congress pushes ahead while…

ISLA warns on minimum haircut complexity

April 17, 2018

Basel III, European Commission, ISLA, Minimum Haircuts

ISLA’s response to the European Commission’s consultation on the finalisation of Basel III identified a need to clarify the scope of minimum haircuts, and warned against making the application too…

JD Supra: US House passes bill to reduce capital requirements of FIs

April 10, 2018

Basel III, capital requirements, House of Representatives

On February 27, the US House of Representatives passed H.R. 4296, which aims to reduce the operational capital requirements imposed on financial institutions. The bill passed with a vote of…

BCBS updates on jurisdictions with Basel III deviations

March 13, 2018

The Basel Committee on Banking Supervision has published overviews of follow-up actions taken or planned by member jurisdictions as of end-2017 to address deviations from the Basel standards. This covers…

Bundesbank’s Dombret on EU-US relations post-Basel III

March 8, 2018

Andreas Dombret, Basel III

Excerpt from speech by Andreas Dombret, Member of the Executive Board of the Deutsche Bundesbank, at the Institute of International Bankers, Annual Washington Conference, Washington DC It is our duty…

Basel Committee gives passing grades for all Basel III banks and G-SIBs

March 6, 2018

Basel Committee, Basel III, G-SIBs

All banks meet Basel III minimum and target CET1 capital requirements as agreed up to end-2015, and all G-SIBs meet both fully phased-in liquidity requirements, according to the Basel Committee’s latest…

BCBS consults on framework for market discipline via regulatory disclosures

February 27, 2018

Basel Committee on Banking Supervision, Basel III

The Basel Committee on Banking Supervision has issued for consultation an updated framework for Pillar 3 disclosure requirements. Pillar 3 of the Basel framework seeks to promote market discipline through…

Man on a mission: the Bundesbank’s Andreas Dombret has a clear vision of Europe’s financial future

February 20, 2018

Jonathan Cooper

Basel III, ECB, Europe, Regulatory

Andreas Dombret, Basel III, Brexit, Bundesbank, globalization, topstory

The Bundesbank’s Dr. Andreas Dombret, responsible for banking, financial supervision and risk control, is presenting a vision of Europe’s financial future that should be heeded. We track some of his…

Institutional investors to boost MMFs on Basel III, EU reforms

February 15, 2018

Basel III, money market funds, State Street

State Street published new research showing that almost three quarters (74%) of institutional investors plan to increase their use of money market funds (MMFs) in addition to bank deposits, as…

Finadium Survey: Better Regulation for Europe’s Securities Financing Transactions

February 14, 2018

Basel III, Collateral Management, ECB, Europe, Repo, Securities Lending

Basel III, Europe, Finadium, Leverage Ratio, Liquidity Coverage Ratio, Repo, securities financing transactions, Securities Lending, topstory

European regulation of Securities Financing Transactions (SFTs) is having its desired effect, which is a near gold standard of risk management. Unfortunately, it’s at the cost of market vibrancy. A…

BCBS chair asks: are we done Basel III yet?

January 29, 2018

Basel Committee on Banking Supervision, Basel III, BCBS

Keynote speech by Stefan Ingves, Chairman of the Basel Committee on Banking Supervision, at the Institute for Law and Finance conference on “Basel III: Are we done now?”, Goethe University,…

Basel Committee consults on extraordinary monetary policy operations in the NSFR

December 24, 2017

Basel III, BCBS, monetary policy

The Committee released its first technical amendment, which is related to the treatment of extraordinary monetary policy operations in the Net Stable Funding Ratio. To provide greater flexibility in the…

FT: Bundesbank member rebuffs criticism of new Basel reforms

December 13, 2017

Basel III, Bundesbank

Bundesbank board member Andreas Dombret has rebuffed banking lobbyists’ criticism of the compromise on Basel regulatory reforms struck by global policymakers. The Basel reforms limit the extent to which banks can…

Finalizing Basel III: the revised Leverage Ratio gets a thumbs down and really isn’t final anyhow

December 11, 2017

Basel III, Regulatory

Bank for International Settlements, Basel Committee, Basel III, Leverage Ratio, SFTs, Supplementary Leverage Ratio, Tier 1 capital, topstory

The Basel Committee on Banking Supervision released their “final” Basel III post-crisis reform documentation last week, and there is a lot to unpack. Already, the Quantitative Impact Study shows that…

Basel III reforms finalized

December 7, 2017

The Group of Central Bank Governors and Heads of Supervision (GHOS), has endorsed the outstanding Basel III post-crisis regulatory reforms, which include the following elements: a revised standardized approach for…

What does “recalibrating” the Leverage Ratio mean?

December 7, 2017

Basel III, Regulatory

Basel III, Europe, Leverage Ratio, Supplementary Leverage Ratio, topstory, US

There has been a lot of talk lately about recalibrating the Leverage Ratio, especially in the US where the enhanced Supplementary Leverage Ratio (eSLR) of 5% for holding companies and…

ECB’s Cœuré: Basel III reforms “look undesirable” at firm level but will have system-wide benefits

November 18, 2017

Basel III, Benoît Cœuré, ECB

Speech by Benoît Cœuré, Member of the Executive Board of the ECB, at the ERCC General Meeting on “The repo market: market conditions and operational challenges”, Brussels, 14 November 2017 Regulation…

IMF: what the evidence from US and Europe says about Basel III and bank lending

November 16, 2017

News and Notes, Uncategorized

Basel III, IMF

Using data on commercial banks in the United States and Europe, this paper analyses the impact of the new Basel III capital and liquidity regulation on bank lending following the…

The Hill: EU setting financial regulation ‘gold standard’ as US takes back seat

November 6, 2017

Basel III, EU, financial regulation, MiFID II

US regulators, preoccupied with modifying the decade-old, hastily put together Dodd-Frank regulatory regime, have let their guard down, potentially leaving the European Union’s (EU’s) fast-tracked regulatory regime to dominate US …

Hong Kong, Singapore or EU post-Brexit: will Advanced Approach bank capital models be a consideration? (Premium)

October 25, 2017

Asia, Basel III

Advanced Approach, Basel III, capital costs, Hong Kong, Leverage Ratio, NSFR, Singapore, Standardized approach, topstory