Join Mailing List

For latest news and information about Treasury and Financial Markets, enter your details below:

Basel III

Print Preview Send to a Friend Share

Published: 12th August 2011 by William Webster

Basel III is about tightening up the capital and liquidity requirements for financial institutions.

Whilst regulators and politicians want to avoid further bails outs there is a danger that the new rules could add further disruption to the credit system. It therefore follows that the new legislation will take at least a decade to be applied and in the process it will be subject to alteration. To be clear bank regulation is very much in the "melting pot".

For many firms Basel III will increase the costs of doing business. Banks that find ways to change what they do or the way they do it will use their capital more effectively (aka leverage). This quick guide considers tiers 1, 2 and 3, the credit value adjustment, the liquidity coverage ratio, the net stable funding ratio and the possible effect on firms.

Buy the full article now for just £5.00

If you have already purchased this article, login to view it.

Displaying 1 to 1 of 1 results in total.

Related Documents

Payment RequiredCapital 100% relevant

25th March 2017

The following is an introduction to bank regulatory capital. This is the amount of capital that the authorities require a bank to hold. It’s a complex topic and has a lot of interested parties. They include banks, taxpayers, regulators and politicians. That’s because increased capital reduces risk but costs banks and potentially may lead a slowdown in the growth of credit.