Generated on 2014/06/19 at 04:58:33 AM

Regulation / Law Item: Basel III

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Description (HTML)	Basel III is a Basel Committee on Banking Supervision (BCBS) issued regulation that focuses on the standards used for market liquidity risk, bank capital adequacy and stress testing. Continuing the theme of its predecessors, Basel III aims to improve the stability of the financial system by focusing on the potential risks associated with bank deposits and other borrowings, as well as the impact of any mass withdrawals on bank reserves. Basel III requires: Higher minimal capital requirement (4.5-6%), risk-weighted asset valuation, new capital buffer. a minimum leverage ratio (calculated by dividing Tier 1 capital by the bank’s average total consolidated assets), which firms must maintain above 3%. Finally, Basel III also introduces some new liquidity requirements, including a Liquidity Coverage Ratio (LCR) to ensure banks have sufficient liquid assets to cover cash outflows for 30 days and a Net Stable Funding Ratio to ensure the provision of enough stable funding to cover a one year period of continued financial stress.
Source Description	A-Team Regulatory Data Handbook
Source URL	http://www.ReferenceDataReview.com
Document	No document attached...
Item Quality Status (Item Quality Status)	Acceptable
Lifecycle - Exist Start Date	2011-06-01
Lifecycle - Exist End Date	UNKNOWN
Updated by	webea.09
Updated on	2014-06-19 03:54:04
governs	Location Global