Basel III: Difference between revisions

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imported>Doug Williamson
(Altered see also from LCR to Liquidity Coverage Ratio so goes straight to full entry)
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A third amended and strengthened international bank capital adequacy framework under development, designed to improve upon Basel II.
''Bank supervision''.
 
Basel III is third amended and strengthened international bank capital adequacy framework issued in 2010 and updated in 2011, designed to improve on Basel II.


Basel III leverage ratio framework and disclosure requirements were issued in January 2014.  
Basel III leverage ratio framework and disclosure requirements were issued in January 2014.  
Among other reforms, Basel III aims to reduce moral hazard and the related 'too big to fail' problem.
It also places substantially greater emphasis on harmonised liquidity and funding risk standards.
Basel III has been implemented in the European Union on a phased basis under its Capital Requirements Directives IV and V (CRD IV and CRD V).
Important changes introduced by Basel III include:
*Significant increases in requirements for the quality and amounts of capital;
*Capital buffers;
*The Leverage Ratio;
*The Liquidity Coverage Ratio and Net Stable Funding Ratio.
Basel III is sometimes written ''Basel 3''.
Further elements of the Basel III framework were agreed in December 2017.  These further elements are sometimes known as Basel IV.
They will be implemented by the sixth Capital Requirements Directive (CRD VI or CRD 6) and the third Capital Requirements Regulation (CRR III or CRR 3).
   
   


== See also ==
== See also ==
* [[Bank supervision]]
* [[Basel Committee on Banking Supervision]]
* [[Basel II]]
* [[Basel II]]
* [[Basel 2.5]]
* [[Basel 3.1]]
* [[Basel IV]]
* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Capital buffer]]
* [[CRD IV]]
* [[CRD IV]]
* [[CRD V]]
* [[CRD VI]]
* [[CRR III]]
* [[Dodd-Frank]]
* [[Financial Stability Board]]
* [[Fully loaded Basel III]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity Coverage Ratio]]
* [[Leverage ratio]]
* [[Leverage Ratio]]
* [[Net stable funding ratio]]
* [[Macroprudential]]
* [[CertICM]]
* [[Microprudential]]
* [[Moral hazard]]
* [[Net Stable Funding Ratio]]
* [[Prudential Regulation Authority]]
* [[Sell-side firm]]
* [[Sell-side firm]]
* [[Solvency II]]
* [[The future of pooling]]
* [[The future of pooling]]
* [[Too Big To Fail]]
* [[Volcker Rule]]




===Other links===
===Other links===
[http://www.treasurers.org/node/8652 Basel III in progress but much to be done: An update, John Grout, ACT January 2013]
[https://www.bis.org/publ/bcbs270.htm Basel III leverage ratio framework and disclosure requirements January 2014]
[https://www.bis.org/publ/bcbs270.htm Basel III leverage ratio framework and disclosure requirements January 2014]
[[Media: Basel III Jan 2014.pdf]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Compliance_and_audit]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 15:48, 26 February 2023

Bank supervision.

Basel III is third amended and strengthened international bank capital adequacy framework issued in 2010 and updated in 2011, designed to improve on Basel II.

Basel III leverage ratio framework and disclosure requirements were issued in January 2014.


Among other reforms, Basel III aims to reduce moral hazard and the related 'too big to fail' problem.

It also places substantially greater emphasis on harmonised liquidity and funding risk standards.


Basel III has been implemented in the European Union on a phased basis under its Capital Requirements Directives IV and V (CRD IV and CRD V).


Important changes introduced by Basel III include:

  • Significant increases in requirements for the quality and amounts of capital;
  • Capital buffers;
  • The Leverage Ratio;
  • The Liquidity Coverage Ratio and Net Stable Funding Ratio.


Basel III is sometimes written Basel 3.


Further elements of the Basel III framework were agreed in December 2017. These further elements are sometimes known as Basel IV.

They will be implemented by the sixth Capital Requirements Directive (CRD VI or CRD 6) and the third Capital Requirements Regulation (CRR III or CRR 3).


See also


Other links

Basel III leverage ratio framework and disclosure requirements January 2014