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To many, the required changes to capital under Basel III may seem obtuse and overly complex. So the timely speech given by Stefan Ingves, Governor of the Sveriges Riksbank and Chairman of the Basel Committee on Banking Supervision is worth reading. He gives a clear articulation of why Basel III exists. Crises are expensive and … Continue reading “A Reminder Of The Basel III Logic”
The Basel Committee on Banking Supervision has issued the Eleventh progress report on adoption of the Basel regulatory framework. It includes a status update for each country, including Australia, where progress continues, based on self-reporting made to the committee in March 2016. Pillar 3 disclosures appear to be the main area of slippage. In January … Continue reading “Update On Basel Regulatory Framework”
We have an update on the Basel Committee’s work to finalise the global regulatory framework from William Coen, Secretary General. He spoke on “Bank capital: a revised Basel framework” at a panel discussion at the 2016 Annual Membership Meeting of the Institute of International Finance, Washington DC, 7 October. The objective is to reduce risk-weighted … Continue reading “A Revised Basel Framework – State of Play”
From Moody’s. Last Thursday, the Basel Committee on Banking Supervision (BCBS) published a consultative document on the classification of problem assets, including definitions of nonperforming exposures (NPEs) and forbearance. The lack of a consistent definition of these terms among countries and banks makes bank analysis complex and fuels scepticism of banks’ disclosures. Consistent definitions would … Continue reading “Basel Committee’s Attempt to Classify Problem Bank Assets Would Aid Bank Analysis”
The Bank for International Settlements (BIS) has released the 10th status report on the adoption of the Basel regulatory framework. We summarise the elements within Basel III and their target dates, and the status of Basel III in Australia. The complexity of the overall approach is highlighted. It also shows the journey to Basel III … Continue reading “Basel III Progress Assessment Published”
The Basel III framework introduced a simple, transparent, non-risk based leverage ratio to act as a credible supplementary measure to the risk-based capital requirements. The Basel Committee is of the view that a simple leverage ratio framework is critical and complementary to the risk-based capital framework and that a credible leverage ratio is one that … Continue reading “Revisions to the Basel III leverage ratio framework”
From Australian Broker. Both the global banking regulator and Australia’s banking regulator have warned another financial crisis is imminent. Speaking at the Australian Financial Review (AFR) Banking and Wealth Summit in Sydney yesterday, Bill Coen, the secretary-general the Basel Committee on Banking Supervision, the global banking regulator, said another global financial crisis is “statistically certain”. … Continue reading “APRA, Basel Committee: Another GFC is coming”
The Basel Committee on Banking Supervision today released a consultative document entitled Reducing variation in credit risk-weighted assets – constraints on the use of internal model approaches. The consultative document sets out a proposed set of changes to the Basel framework’s advanced internal ratings-based approach and the foundation internal ratings-based approach. The IRB approaches permit … Continue reading “Basel Committee proposes measures to reduce the variation in credit risk-weighted assets”
The Basel Committee on Banking Supervision has issued for consultation Pillar 3 disclosure requirements – consolidated and enhanced framework. Pillar 3 of the Basel framework seeks to promote market discipline through regulatory disclosure requirements. The proposed enhancements include: the addition of a “dashboard” of key metrics, a draft disclosure requirement of hypothetical risk-weighted assets calculated … Continue reading “The Basel Committee consults on revisions to the Pillar 3 disclosure framework”
The Basel Committee on Banking Supervision’s second set of proposals to update the standardised approach to credit risk, published in December 2015, represents a change of approach that will improve risk sensitivity. But the regime proposes to retain flexibility for national regulatory implementation and bank risk weighting. This means that comparing capital ratios across banks … Continue reading “Basel Credit Risk Proposals Evolve, Consistency Elusive – Fitch”