Regulating systemically important financial firms | The Financial Regulation Forum   Leave a comment

A discussion on financial regulation , Basel III , and SISI or Systemically Important Financial Firms.

 

Last fall central bank governors and heads of supervision from countries represented on the Basel Committee on Banking Supervision agreed to the important package of reforms in capital regulation known as Basel III. The Basel III requirements for better quality of capital, improved risk weightings, higher minimum capital ratios, and a capital conservation buffer comprise a key component of the post-crisis reform agenda. But they are just that – a component. Although a few features of Basel III reflect macroprudential concerns, in the main it was a microprudential exercise. The new minimum equity capital ratio and conservation buffer were calibrated on the basis of an historical examination of the individual loss experiences of banks in the United States and six other countries.

via Regulating systemically important financial firms | The Financial Regulation Forum.

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Posted June 25, 2011 by arnoneumann in banking

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