Basel III - Wikipedia, the free encyclopedia

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Basel III
From Wikipedia, the free encyclopedia

BASEL III (sometimes "Basel 3") refers to a new update to the Basel Accords that is under development. The term appeared in the literature as early as 2005 [1] and is now in common usage [2][3] anticipating this next revision to the Basel Accords. The Bank for International Settlements (BIS) itself began referring to this new international regulatory framework for banks as "Basel III" (http://www.bis.org/bcbs/basel3.htm) in September 2010. ■ The draft Basel III regulations include: ■ "tighter definitions of Tier 1 capital; banks must hold 4.5% by January 2015, then a further 2.5%, totalling 7%.[4] ■ the introduction of a leverage ratio, ■ a framework for counter-cyclical capital buffers, ■ measures to limit counterparty credit risk, ■ and short and medium-term quantitative liquidity ratios."[5] Professionals and officers with Basel II knowledge and experience will be required to lead the new Basel III projects, and they have started studying the differences from the Basel II framework [6]

In September 2010, the Basel Committee

Contents
■ 1 Overview ■ 2 Development of the New Basel III Standard ■ 2.1 Summary of Changes Proposed in Basel III ■ 2.2 Key Dates / Proposed Timeline ■ 2.3 Basel III Development In the News ■ 2.3.1 Update on June 5–6 Meetings in Busan, Korea ■ 2.3.2 Current News ■ 3 See also ■ 4 References

Overview
In response to the recent financial crisis, the Basel Committee on Banking Supervision (BCBS) set forth to update their guidelines for capital and banking regulations: This consultative document presents the Basel Committee's proposals to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector. The objective of the Basel Committee's reform package is to improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source, thus reducing the risk of spillover from the financial sector to the real economy. [7]

http://en.wikipedia.org/wiki/Basel_III

30-09-2010

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