HLA: Difference between revisions
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imported>Doug Williamson (Remove reference to phase in period.) |
imported>Doug Williamson (Classify page.) |
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* [[Countercyclical buffer]] | * [[Countercyclical buffer]] | ||
* [[G-SIFI]] | * [[G-SIFI]] | ||
* [[ | * [[Systemically Important Bank]] (SIB) | ||
* [[Systemically Important Financial Institution]] | * [[Systemically Important Financial Institution]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Risk_reporting]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 17:38, 25 June 2022
Banking - capital adequacy.
The Higher Loss Absorbency capital requirement imposed by Basel III on global systemically important banks (SIBs or G-SIBs).
The HLA is also known as the 'SIB surcharge'.
These banks are required to hold additional capital, in the form of Common Equity Tier 1 (CET1).
The initial HLA requirement ranges from 1% to 3.5%.
The HLA is designed to incorporate incentives for banks to avoid becoming more systemically important.
For this reason the methodology allows for the highest level of capital requirement to be increased further.
