Basel III News, November 2011

Basel III News, November 2011

by George Lekatis
     
 
It is important to assess the consequences of the new Basel iii rules, and to monitor the regulatory differences.

More capital - Ajai Chopra (deputy director, European department of the International Monetary Fund) believes that the Basel III accord is too weak to save European banks from a fresh financial crisis, so he has urged the European Union to raise

Overview

It is important to assess the consequences of the new Basel iii rules, and to monitor the regulatory differences.

More capital - Ajai Chopra (deputy director, European department of the International Monetary Fund) believes that the Basel III accord is too weak to save European banks from a fresh financial crisis, so he has urged the European Union to raise minimum levels in its forthcoming Capital Requirements Directive IV.

"The Basel III minimum is too low for European banks because sovereign exposure and intra-EU exposure still represent significant risks to EU banks," Chopra explained.

Less Capital - Global regulators suggest that some governments in emerging markets and developing economies should be given the flexibility to adopt international rules on bank capital “at a pace tailored to their circumstances.”

Basel iii capital - The Swiss finance ministry agreed to amend the Swiss capital rules for banks to bring them into line with the Basel III framework.

Not even Basel ii capital - The same time, we learn from the Basel Committee's Progress report on Basel III implementation that many countries have not implemented Basel 2 yet.

The Basel Committee's Progress report on Basel III implementation provides a high-level view of its members' progress in adopting Basel II, Basel 2.5 and Basel III, as of end September 2011.

It focuses on the status of domestic rule-making processes to ensure that the Committee's capital standards are transformed into national law or regulation according to the internationally agreed timeframes.

The Committee believes that disclosure will provide additional incentive for members to fully comply with the international agreements.

In this report, the following classification is used to classify the status of adoption of regulatory rules:

1. Draft regulation not published

This status corresponds to cases where no draft law, regulation, or other official document has been made public to detail the planned content of the domestic regulatory rules.

This status includes cases where a jurisdiction has communicated high-level information about its implementation plans but not detailed rules.

2. Draft regulation published

This status corresponds to cases where a draft law, regulation or other official document is already publicly available, for example for public consultation or legislative deliberations.

The content of the document has to be specific enough to be implemented when adopted.

3. Final rule published:
This status corresponds to cases where the domestic legal or regulatory framework has been finalised and approved but is still not applicable to banks.

4. Final rule in force:

This status corresponds to cases where the domestic legal and regulatory framework is already applied to banks.

In order to support and supplement the status reported, summary information about the next steps and the implementation plans being considered by members are also provided for each jurisdiction.

For Basel II, a special colour code has been used in addition to the status above, to identify the jurisdictions which, independent of the adoption status reported, have in practice not effectively completed the implementation of the rules.

The use of such a colour code will be expanded to Basel 2.5 in 2012 and to Basel III in 2013.

Product Details

ISBN-13:
2940013255036
Publisher:
Compliance LLC
Publication date:
11/02/2011
Sold by:
Barnes & Noble
Format:
NOOK Book
Pages:
37
File size:
1 MB

Meet the Author

George Lekatis is the General Manager and Chief Compliance Consultant of Compliance LLC, a leading provider of risk and compliance training and executive coaching in 36 countries.

George has more than 17,000 hours experience as a professional speaker and seminar leader. He has worked for more than 15 years as a management consultant and educator and has demonstrated exceptional presentation and communication skills.

George is the president of the Basel ii Compliance Professionals Association (BCPA, www.basel-ii-association.com), the largest association of Basel ii professionals in the world, and the Basel iii Compliance Professionals Association (BiiiCPA, www.basel-iii-association.com), the largest association of Basel iii professionals in the world.

George is also president of the Sarbanes Oxley Compliance Professionals Association (SOXCPA, www.sarbanes-oxley-association.com), the largest Association of Sarbanes Oxley professionals in the world

George is an expert witness, qualified to investigate and testify about risk and compliance management standards, policies, procedures, best practices, due care and due diligence.

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