Search Results for: basel

Basel Committee Guidelines on Prudential Treatment of Problem Assets

Moody’s says the newly released Basel Committee Guidelines on Prudential Treatment of Problem Assets Are Credit Positive for Banks. Last Tuesday, the Basel Committee on Banking Supervision (BCBS) published Guidelines on the prudential treatment of problem assets (definition of nonperforming exposures and forbearance). The guidelines address the current absence of a common and internationally applicable … Continue reading “Basel Committee Guidelines on Prudential Treatment of Problem Assets”

Basel Committee’s Adverse Assessment of G-SIBs Risk-Reporting Practices Is Credit Negative

Moody’s says last Tuesday, the Basel Committee on Banking Supervision reported that most global systemically important banks (G-SIBs) have an unsatisfactory level of compliance with the Basel Committee’s principles for effective risk data aggregation and risk reporting. This assessment is credit negative for G-SIBs because it signals that most still do not have the appropriate … Continue reading “Basel Committee’s Adverse Assessment of G-SIBs Risk-Reporting Practices Is Credit Negative”

Enhancements to the Basel Pillar 3 Disclosure Framework Released

The Basel Committee on Banking Supervision has issued Pillar 3 disclosure requirements – consolidated and enhanced framework. This standard represents the second phase of the Committee’s review of the Pillar 3 disclosure framework and builds on the revisions to the Pillar 3 disclosure published by the Committee in January 2015. The Pillar 3 disclosure framework … Continue reading “Enhancements to the Basel Pillar 3 Disclosure Framework Released”

Latest Basel III monitoring results

The Basel Committee has published the results of its latest Basel III monitoring exercise based on data as of 30 June 2016 in a 65 page report. Virtually all participating banks meet Basel III minimum and target CET1 capital requirements as agreed up to end-2015. The report does not reflect any standards agreed since the … Continue reading “Latest Basel III monitoring results”

Basel III – The Net Stable Funding Ratio – FAQs Updated

The Basel Committee on Banking Supervision has issued the second set of frequently asked questions (FAQs) and answers on Basel III’s Net Stable Funding Ratio (NSFR). This is a pretty technical document, but does guide readers through the complex rules. Once again it underscores the journey to complexity which the Basel Committee has been on. … Continue reading “Basel III – The Net Stable Funding Ratio – FAQs Updated”

Applying Basel III to small banks

Dr Andreas Dombret Member of the Executive Board of the Deutsche Bundesbank spoke on the finalisation of Basel III  – “One size fits all? Applying Basel III to small banks and savings banks in Germany“. A demanding 2017 lies ahead of banks and savings banks: While the sector is witnessing a structural scale-back of sorts, low interest … Continue reading “Applying Basel III to small banks”

Analysis of Mortgage Risk Under Basel

The Bank of England just published a staff working paper “Specialisation in mortgage risk under Basel II“.  Lenders using the less sophisticated risk models (generally smaller banks) are found to have a higher concentration of higher-risk mortgages than those using the advanced models. They looked at the two models which were introduced under Basel II, … Continue reading “Analysis of Mortgage Risk Under Basel”

Delayed Completion of Basel 3 Reform Is Credit Negative for Banks

According to Moody’s the 3rd January announcement from the Basel Committee on Banking Supervision (BCBS) that the final decision on the completion of the Basel 3 reform (also referred to as Basel 4) has been postponed, is credit negative for Banks. The delay could also dent investors’ confidence in banks’ capital ratios and result in … Continue reading “Delayed Completion of Basel 3 Reform Is Credit Negative for Banks”

Basel III Reforms Delayed

The finalisation of the Basel III reforms has been delayed, according to a press release today.  No details were given of which issues remain to be resolved, nor a revised time frame. The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, welcomes the … Continue reading “Basel III Reforms Delayed”

Basel IV Proposals May Lead to EU/US Divergence

Basel Committee discussions on “Basel IV” at the end of November may expose deep divisions between national members and could lead to further differentiation between the EU and internationally agreed Basel standards, Fitch Ratings says. This would exacerbate challenges for market participants attempting to compare the capital strength of banks globally and could undermine confidence … Continue reading “Basel IV Proposals May Lead to EU/US Divergence”