The US Federal Reserve Board on Tuesday proposed steps to strengthen regulation and supervision of large bank holding companies and systemically important nonbank financial firms. The proposal, which includes a wide range of measures addressing issues such as capital, liquidity, credit exposure, stress testing, risk management, and early remediation requirements, is mandated by the Dodd-Frank [...]
International regulatory framework for banks (Basel III). What is Basel III? Around the world, central bankers, regulators and governments have responded to the financial crisis with new regulation and legislation. The cornerstone of this global initiative to contain risk is Basel III – sweeping new regulatory standards for banks on capital adequacy and liquidity. Basel [...]
Speech by Robert Jenkins, Member of the UK Financial Policy Committee at the International Centre for Financial Regulation, Berlin. Ladies and Gentlemen, my name is Robert Jenkins. I have worked on both the sell side and the buy side of finance. I now join many of you in a regulatory role. Specifically, I am a [...]
Basel on wrong path to tackle systemic risk. By Charles Goodhart* An enduring deficiency of our regulatory system has been that it has focused unduly on attempts to improve the resilience of individual banks and other systemically important financial intermediaries to shocks rather than concentrating on the stability of the financial system as a whole. [...]
Measures for global systemically important banks agreed by the Group of Governors and Heads of Supervision. At its 25 June 2011 meeting, the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision (BCBS), agreed on a consultative document setting out measures for global systemically important banks [...]
06 Jun. To cushion against losses, Fed considers raising capital requirements for banks. Determining which financial companies are so large that their failures could pose a risk to the nation’s financial system should be done using a “transparent and replicable” formula that makes it “clear to the financial firms, the markets and the public” what [...]
28 May. Barnier and Basel III. Michel Barnier, the EU internal market commissioner, Europe’s top financial services policymaker lashed out on Friday at criticism of the way Brussels was implementing new rules designed to improve the safety of the European Union’s banking system. “Europe will implement Basel III,” he insisted. “We have said it before [...]
Chained but untamed – An Economist Special Report. The world’s banking industry faces massive upheaval as post-crisis reforms start to bite. They may make it only a little safer but much less profitable. The near-collapse of the world’s banking system two-and-a-half years ago has prompted a fundamental reassessment of the industry. Perhaps the biggest casualty [...]
The proposed reforms by the Independent Commission on Banking (ICB) are aimed at preventing any future difficulties in banks’ investment arms from affecting savers’ deposits, and protecting taxpayers from future bailouts. The last post provides an executive summary of the Interim Report. Below we provide some press comment on the Report. Financial Times: Lloyds lashes [...]