Basel III

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, Featured, 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

The news that London-based banks are considering Hong Kong as a new APAC “booking entity” trading hub brings up an important qualification for banks looking for an expanded Asian base…

BIS updates on Basel III adoption

October 23, 2017

This updated Progress report on adoption of the Basel regulatory framework provides a high-level view of Basel Committee members’ progress in adopting Basel III standards as of end-September 2017. The…

Reuters: global regulators close to final deal on Basel III sticking point

October 11, 2017

Global banking regulators are close to a final deal on capital rules that aim to ensure banks can withstand financial shocks, with Europe and the United States set to compromise…

US Treasury department weighs in on financial reforms with second report

October 6, 2017

Basel III, Dodd-Frank, Financial CHOICE Act, US Treasury

The US Department of the Treasury released a report detailing how to streamline and reform the U.S. regulatory system for the capital markets. Treasury’s evaluation of current capital market regulations…

BIS: Basel III liquidity monitoring tools

October 5, 2017

Basel Committee, Basel III, BIS, Liquidity Coverage Ratio

While the introduction of the Liquidity Coverage Ratio and Net Stable Funding Ratio have made the measurement of liquidity across banks and jurisdictions significantly more comparable and consistent, the ratios…

ISLA releases securities lending market report

August 30, 2017

Basel III, European Commission, FSB, ISLA, SFTR

In this latest report, ISLA builds upon previously observed themes, particularly around the role of government bond lending and how collateral is flowing around the system. From the report: Through the closer monitoring of…

Great post from the Fed: impact of the Leverage Ratio on US/Europe/Asian bank participation in the US repo market

August 9, 2017

Basel III, Federal Reserve Bank of New York, Leverage Ratio

Research from the Federal Reserve Bank of New York suggests that the implementation details of financial regulations can have important implications for global financial markets. Differences in implementation of the…

Reuters: Basel committee delays bank capital deal

August 3, 2017

Basel Committee on Banking Supervision, Basel III

The Basel Committee on Banking Supervision will postpone their next meeting in another bid to agree on global capital rules, taking more time to try to overcome objections from European…

Asian regulators officially delay Basel III’s FRTB

July 11, 2017

Asia, Basel III, Regulatory

Asia, Basel III, FRTB, Leverage Ratio, topstory

We’ve been expecting this for a while and it has finally happened: Asian regulators are saying they will delay Basel III implementation of the Fundamental Review of the Trading Book…

Basel standards implementation: G20 report

July 5, 2017

Basel III, BCBS, G20

Full, timely and consistent implementation of Basel III remains fundamental to building a resilient financial system, maintaining public confidence in regulatory ratios and providing a level playing field for internationally…

Here’s what no US Treasuries in the Leverage Ratio means for US banks and US repo (Premium)

June 26, 2017

Basel III, Dodd-Frank, Profitability, Regulatory, Repo, US

Basel III, Repo, Supplementary Leverage Ratio, topstory, US Treasuries

The US Treasury’s report recommending that US Treasuries (UST) be removed from the US enhanced Supplementary Leverage Ratio (eSLR) has some direct and positive implications for US banks. Here’s a…

BCBS: Range of practices in implementing the countercyclical capital buffer policy

June 24, 2017

Basel Committee, Basel III, Countercyclical Capital Buffer

The Basel Committee on Banking Supervision introduced the countercyclical capital buffer (CCyB) policy as part of the Basel III reforms. The countercyclical capital buffer aims to ensure that banking sector capital…

Bloomberg: U.S. Softens Basel Stance in Push for Deal on Capital Rules

May 9, 2017

Basel III, capital floors, Federal Reserve