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Home Archive for category "Pillar 3" (Page 2)
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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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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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European Banking Authority Publishes Assessment of Basel Pillar 3 Disclosures by Large EU Banks

Today, the European Banking Authority (EBA) published its assessment of the 2012 Basel Pillar 3 disclosures made by 19 EU banks.  The EBA concluded that overall, despite improvements in some specific areas, the banks’ compliance with disclosure requirements remains unchanged compared to last year’s assessment.  The report identifies examples of best practices that EU banks are encouraged to follow to improve the quality, consistency and comparability of their disclosures and their compliance with the regulatory requirements.

U.S. Pillar 3 Requirements:  Beginning in 2015, top-tier U.S.…  Read More

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Overview of Basel Committee’s Proposed Liquidity Coverage Ratio Disclosure Standards

Today, the Basel Committee proposed a set of liquidity coverage ratio (LCR) disclosure standards.  Part of the Basel III liquidity framework, the LCR requires a banking organization to maintain a minimum amount of liquid assets to withstand a short-term liquidity stress period.  Specifically, the LCR requires a banking organization’s stock of unencumbered high-quality liquid assets (HQLAs) to be at least 100% of its total net cash outflows over a 30-day standardized supervisory liquidity stress scenario.  Following is a high-level overview of the Basel Committee’s proposed LCR disclosure standards.…  Read More

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Basel Committee Publishes Report on Regulatory Consistency of Risk-Weighted Assets in the Banking Book

Today, the Basel Committee published its first report on the regulatory consistency of risk-weighted assets (RWAs) for credit risk in the banking book.  This study is a part of the Basel Committee’s wider Regulatory Consistency Assessment Programme (RCAP), which is intended to ensure consistent implementation of the Basel III framework. The study draws on supervisory data from more than 100 major banks, as well as additional data on sovereign, bank and corporate exposures collected from 32 major international banks as part of a portfolio benchmarking exercise.…  Read More

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