Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
10th January 2012
No delay on Basel III liquidity - peer review introduced
Liquidity capital requirements will be brought into effect under Basel III from 2015. Banks had been lobbying for a delay. There was signs of some softening regarding the rules over the weekend. The decisions followed a meeting of the the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision on Sunday.
Specifically the acceptance that in times of stress some of the liquidity buffer may be used. Consideration is to be given as to how central bank emergency liquidity provision be included in the calculation. It was stressed that central banks should remain lender of last resort and not a routine source of liquidity.
The Basel process has been complicated and delayed in the past when the coordinating committees' members return to their own country / region and national interest steps in. To try and avoid the same fate it was also announced:
"The Committee will monitor, on an ongoing basis, the status of members' adoption of the globally-agreed Basel rules. It will review the compliance of members' domestic rules or regulations with the international minimum standards in order to identify differences that could raise prudential or level playing field concerns. The Committee will also review the measurement of risk-weighted assets to ensure consistency in practice across banks and jurisdictions.
"Against this background, each Basel Committee member country has committed to undergo a detailed peer review of its implementation of all components of the Basel regulatory framework. In addition to Basel III, the Committee will assess implementation of Basel II and Basel II.5 (ie the July 2009 enhancements on market risk and resecuritisations). The GHOS also endorsed the Committee's agreement to publish the results of the assessments. The Basel Committee will discuss and define the protocol governing the publication of the results. The GHOS also agreed that the initial peer reviews should assess implementation in the European Union, Japan and the United States. These reviews will commence in the first quarter of 2012."