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Home Archive for category "Basel III – International" (Page 4)
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Basel Committee Chairman Discusses Next Steps for the Basel Committee

Basel Committee Chairman Stefan Ingves has delivered a speech discussing the Basel Committee’s policy agenda over the next year, noting that “there is still a lot on the Committee’s plate – at last count, a total of around 50 projects.”  Among other topics, Chairman Ingves discussed the variation of risk-weighted assets (RWAs) among banks and potential policy responses.

The Basel Committee has published three studies on the variation of RWAs among banks – two for the trading book (our earlier blog post on this topic is available here) and one for the banking book (our earlier blog post on this topic is available here). …  Read More

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Basel Committee Discusses Fundamental Elements of a Bank’s Capital Planning Process

Today, the Basel Committee published a paper that discusses four fundamental components of a sound capital planning process:  (1) internal control and governance; (2) capital policy and sufficient risk capture; (3) forward-looking view through stress testing; and (4) management framework for preserving capital.

The Basel Committee stated that its paper does not set forth new capital planning guidance.  Rather, it presents sound practices observed at some banks, which the Basel Committee believes can foster overall improvement in banks’ capital planning processes. …  Read More

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Revised Basel III Leverage Ratio: Visual Memorandum

The Basel Committee recently finalized its revisions to the Basel III leverage ratio.  Compared to its June 2013 proposal, the Basel Committee has made several important changes to the denominator of the Basel III leverage ratio.  Davis Polk’s visual memorandum uses diagrams, comparison tables, examples and formulas to illustrate the Basel Committee’s revisions to the Basel III leverage ratio and potential U.S. implementation issues.

View the Revised Basel III Leverage Ratio Visual Memorandum here (PDF) Read More

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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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