Regulatory Capital & Liquidity Standards

The Basel III Capital Accord is an agreement of the globally representative Basel Committee on Banking Supervision concerning capital adequacy, liquidity and supervisory requirements for banks worldwide. Requirements of the agreement are in the process of being implemented by the national and supra-national regulators of countries around the world.

ASF Comments and Resources

• ASF Comment Letter: BCBS Consultative Document: Revisions to the Basel Securitisation Framework – March 14, 2013
• ASF Presentation: Select Comments and Recommendations on the Basel III Joint Notices of Proposed Rulemaking – February 12, 2013
• ASF Press Release: Basel Committee Revised LCR – January 07, 2013
• ASF-Harvard Working Paper Draft: Individual-Institution and Systemic Risk Implications of the Basel III LCR – January 06, 2013
• ASF Request: Market Risk: Parameter W Technical Amendment – December 07, 2012

Regulatory Materials and Other Resources

• Basel Committee Releases Basel Implementation Progress Report – April 04, 2013
• BCBS Basel Implementation Progress Report – April 04, 2013
• BCBS Consultative Document: Supervisory Framework for Measuring and Controlling Large Exposures – March 26, 2013
• BCBS Basel III Monitoring Results – March 19, 2013
• BCBS Working Paper: The Proposed Revised Ratings-Based Approach – January 31, 2013

ASF News

• ASF Submits Joint Comment Letter to FDIC re Assessments and Large Bank Pricing NPR – May 29, 2012
• ASF Submits Supplemental Market Risk NPR Letter – April 29, 2012
• ASF Submits Follow-Up Letter to Regulators re Market Risk NPR – April 26, 2012
• ASF Submits Basel III LCR Materials to Global Regulators – April 23, 2012
• ASF Submits Proposed Definition & Revision to Basel III to Basel Secretariat – February 29, 2012

Industry News

• Basel Committee Releases Basel Implementation Progress Report – April 04, 2013
• Chairman Johnson Releases SBC Agenda – February 12, 2013
• Chairman Hensarling Releases HFSC Agenda – February 12, 2013
• Basel Committee Releases Working Papers re MSFA and RRBA – February 07, 2013
• Basel Committee Publishes Report re Risk-Weighted Assets – January 31, 2013

Sub-Issues

• EU Capital Requirements Directives

  The Capital Requirements Directive (CRD) is intended to introduce a supervisory framework in the European Union relating to capital adequacy and liquidity. Governing bodies and regulators of the EU are in the process of negotiating a new CRD to replace the current CRD that would implement the requirements of the Basel III accords.

• Basel II & Previous Capital Issues

  The Basel II Capital Accord, which has since been superseded by Basel III, was an agreement of the Basel Committee on Banking Supervision relating to capital adequacy initially published in June 2004. Broken into the three pillars of minimum capital requirements, supervisory review, and market discipline, the accords set forth many approaches to capital valuation that came to impact Basel III. Basel II was in the process of being implemented internationally at the time of the financial crisis. Following the crisis, the Basel Committee on Banking Supervision released proposals to enhance the Basel II framework, known as Basel 2.5, and being negotiations on a new framework, which would become Basel III.

• Basel III

  The Basel III Capital Accord is an agreement of the globally representative Basel Committee on Banking Supervision concerning capital adequacy, liquidity and supervisory requirements for banks worldwide. Requirements of the agreement are in the process of being implemented by the national and supra-national regulators of countries around the world.

• Ratings Alternatives for Risk-Based Capital

  The market risk capital rules were finalized by the FRB, FDIC, and OCC in June 2012, and will be implemented pursuant to the Basel 2.5 reforms. Effective January 1, 2013, the market risk rules represent a template through which the prudential regulators will craft capital rules that do not rely upon credit ratings.

• Regulation YY

  The FRB is currently considering comments in response to its Regulation YY notice of proposed rulemaking addressing enhanced prudential standards and early remediation requirements. Issued pursuant to Sections 165 and 166 of the Dodd-Frank Act, the NPR’s enhanced standards include capital and leverage requirements, liquidity standards, requirements for overall risk management (including establishing a risk committee), single-counterparty credit limits, stress test requirements, and a debt-to-equity limit for companies that the FSOC has determined pose a threat to financial stability.

• FDIC Large Bank Assessments