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Home Archive for category "Basel Committee" (Page 4)
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Basel III Net Stable Funding Ratio (NSFR) – High-Level Comparison Tables

[Detailed client memorandum to come.]  We have prepared a set of tables that provide a high-level comparison of the available stable funding (ASF) factors and the required stable funding (RSF) factors used to calculate the Basel III net stable funding ratio (NSFR).  The tables compare the Basel Committee’s January 2014 proposed revisions to the NSFR with the original December 2010 version of the NSFR.  We will be publishing a client memorandum that analyzes the key proposed changes to the Basel III NSFR.…  Read More

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Davis Polk Blackline of Basel Committee’s Final Liquidity Coverage Ratio Disclosure Standards

We have prepared a blackline that compares the Basel Committee’s January 2014 final Basel III liquidity coverage ratio (LCR) disclosure standards to its July 2013 proposed disclosure standards.  The Basel Committee expects national regulators to implement the LCR disclosure standards by January 1, 2015, so that banking organizations in their jurisdiction may begin making disclosures in 2015.

Background:  Today, the Basel Committee finalize its Pillar 3 disclosure standards for the Basel III LCR.  Our blog post summarizing the Basel Committee’s July 2013 proposed disclosures standards is available here. …  Read More

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Overview of Basel Committee’s Proposed Revisions to Basel III Net Stable Funding Ratio

[Detailed client memorandum to come.] Today, the Basel Committee proposed revisions to the Basel III net stable funding ratio (NSFR).  The original version of the NSFR was published in December 2010.

Background:  Part of the Basel III liquidity coverage ratio, the NSFR requires banking organizations to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities.  The NSFR is defined as the amount of available stable funding (ASF) relative to the amount of required stable funding (RSF). …  Read More

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Davis Polk Blackline of Basel Committee’s Revisions to Basel III Leverage Ratio

[Detailed client memorandum to come.] We have prepared a blackline that compares the Basel Committee’s January 2014 final revisions to the Basel III leverage ratio to the June 2013 proposed revisions.  We will be publishing a client memorandum that discusses the key changes to the Basel III leverage ratio.

Background:  Today, the Basel Committee issued final revisions to the Basel III leverage ratio framework and disclosure requirements following endorsement by its governing body, the Group of Governors and Heads of Supervision (GHOS).…  Read More

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Basel Committee’s Oversight Body Endorses Revisions to Basel III Leverage and Liquidity Standards

Today, the Basel Committee’s oversight body, the Group of Governors and Heads of Supervision (GHOS), endorsed a number of important proposed and final revisions to the Basel III capital and liquidity standards, including:

  • Revisions to the Basel III leverage ratio, which are intended to reflect agreement on a consistent measure of leverage “to overcome differences in national accounting frameworks” and to maintain the leverage ratio as a “backstop” to risk-based capital requirements;
  • Proposed changes to the Basel III net stable funding ratio (NSFR), for which the Basel Committee has released a consultative document;
  • Final Pillar 3 disclosures standards relating to the Basel III liquidity coverage ratio (LCR);
  • Revisions to the Basel III LCR providing that committed liquidity facilities of a type already recognized for jurisdictions with insufficient high-quality liquid assets (HQLAs) may have a role to play within the LCR framework; and
  • The Basel Committee’s strategic priorities for the next two years, which include ongoing monitoring and assessment of Basel III implementation; further examining the Basel framework’s balance between simplicity, comparability and risk sensitivity; and improving effectiveness of supervision.
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Federal Reserve Issues Guidance to Large Financial Institutions on Managing Foreign Exchange Settlement Risks for Physically Settled Transactions

Today, the Federal Reserve issued a Supervision and Regulation letter (SR letter) regarding the Basel Committee’s February 2013 guidance for managing risks associated with the settlement of foreign exchange transactions.  The Basel Committee’s guidance sets forth seven guidelines for managing foreign exchange transaction settlement risks.  Our earlier blog post on the Basel Committee’s guidance is available here.  The Federal Reserve stated that large financial institutions subject to the SR letter should apply the Basel Committee’s seven guidelines to their foreign exchange activities. …  Read More

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