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Basel Committee to brighten banks’ New Year

The Basel Committee on Banking Supervision will meet this Sunday, the 12th January.  They are close to a final decision on their June 2013 draft proposals to exclude all collateral from leverage ratio calculations and ban netting for repo agreements, irrespective of national rules. The decision is material- according to its 2012 Annual Report, JP […]

FX Forwards and Swaps to be initial margin free

The WGMR[1] has told Risk magazine that their rules for non-centrally cleared derivatives will be published within weeks. A member of the working group said, “Publication is expected by the end of the month. A specific treatment [i.e. an exemption] for forex swaps and forwards is indeed likely”. Market participants have lobbied hard over the […]

Basel III phase-in begins to bite

30th July 2013. The PRA updated its statements on bank and capital leverage ratios to include Barclays. A brief summary of 2013 statements to date: Lloyds/RBS– the PRA has mandated the capital requirements- the two banks’ compliance plans will be announced once discussion with all 8 major banks are concluded. Co-operative Bank– needs to generate […]

Margin Rules for Non-Cleared Derivatives Delayed Again

Any hopes of seeing a global standard with respect to the margining of non-cleared derivatives in the near future seem to have been dashed. Risk reports that the group tasked with drafting the rules, the Working Group on Margining Requirements (a joint working group of the Basel Committee on Banking Supervision and the International Organization […]

EU Welcomes Basel III Revisions

On 7 January 2012, the EU Commission published a statement by Michel Barnier welcoming the agreement of the Basel Committee to the revision of the Liquidity Coverage Ratio (LCR) and its gradual phasing-in between 2015 and 2019. The Commission’s approach to liquidity issues within the context of CRD4 is to initiate a reporting period at […]

BIS Publishes Detail on Liquidity Coverage Ratio

On 6 January 2012, the Bank for International Settlements (BIS) published a press release regarding the detailed amendments to the Liquidity Coverage Ratio (LCR), following endorsement by the Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision. Please see our posting yesterday for more information on the […]

Basel Committee publishes framework for D-SIBs

Introduction On 11 October 2012, the Bank for International Settlements (BIS) published a framework for identifying and dealing with domestic systemically important banks (D-SIBs). The purpose of the framework is to reduce the probability of D-SIB failure compared to non-systemic institutions.  In furtherance of this goal, 12 principles have been identified.  These establish a minimum […]

Basel Committee publishes framework for D-SIBs

Introduction On 11 October 2012, the Bank for International Settlements (BIS) published a framework for identifying and dealing with domestic systemically important banks (D-SIBs). The purpose of the framework is to reduce the probability of D-SIB failure compared to non-systemic institutions.  In furtherance of this goal, 12 principles have been identified.  These establish a minimum […]

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