Basel II
FSB sets out framework for monitoring implementation of financial reforms
Financial Stability Board announces co-ordination framework for implementation monitoring of G20/FSB financial reforms; priority areas set for extra scrutiny
Financial Stability Board publishes survey responses
Comprehensive survey answers reveal FSB member countries’ plans to conform with the G-20’s recommendations for strengthening financial stability
Russia and ECB complete co-operation programme
ECB announces the completion of a co-operation programme with the Bank of Russia, designed to improve banking supervision and internal audit in the country
An overemphasis on risk models was the key flaw in the regulatory architecture
Risk models are useful for banks’ risk managers, but regulators should beware, Brandon Davies notes
Interview: Andrew Tyrie
The chairman of the UK’s Treasury Select Committee talks to Claire Jones about the future of financial regulation, why he’s a sceptic on Basel and reining in a more powerful Bank of England
Wellink calls on Africa to address sifis
Netherlands Bank president Nout Wellink calls on African region to take action against financial institutions that pose systemic threats
Basel III should aim higher on capital targets: Bank research
Discussion paper published by Bank of England and co-authored by external rate-setter David Miles suggests Basel III common equity requirements are too low
Fed’s Tarullo defends US record on Basel II
Federal Reserve governor Daniel Tarullo dismisses criticism over US implementation of minimum capital requirements under Basel II; says Basel III will only be effective if applied rigorously by all countries
Italy: Basel II framework left banks defenceless against monetary policy shocks
Bank of Italy study shows higher capital requirements under Basel II did not guard against monetary policy shocks
Bank’s Tucker: Basel III not rigorous enough
Bank of England deputy governor Paul Tucker says framework will need to be supplemented
Luxembourg’s Mersch condemns Basel III bias
Central Bank of Luxembourg governor Yves Mersch says Basel III will be more detrimental to European banks than US lenders; echoes bankers’ concerns on lending to small and medium enterprises
IIF defends doom-and-gloom Basel III forecasts
Institute for International Finance backs up its predictions of Basel III output loss, which are deeper than regulators’
Basel II grievances stir transatlantic tensions on new accord
BNP Paribas chairman Michel Pébereau slams United States’ failure to implement Basel II across the board; says Basel III will unfairly impair Europe
Weber, Blankfein praise Basel III leverage cap
Bundesbank president Axel Weber and Goldman Sachs chairman Lloyd Blankfein laud Basel III’s inclusion of leverage ratio, as opposition mounts
No easy alternatives to credit ratings
US regulators are right to look to curb their reliance on credit ratings. However, it will prove tricky to find viable alternatives
Basel Committee defends adjustments to Basel III as calibration decisions loom
Regulators describe difficulties ahead as they prepare for Basel III calibration and transition decisions in September
Central Bank of Luxembourg: banks pass stress tests
Central Bank of Luxembourg study shows local banks’ tier one capital buffers are sufficient to weather macroeconomic shocks
Canada throws weight behind Basel III, lauding output gains
Bank of Canada says forthcoming capital and liquidity ratios will save the country nearly C$200 billion; stresses that Canada must not rest on laurels, not having experienced banking crisis
Banks overestimate Basel III’s impact on growth: regulators
Basel body says hiking capital ratios by one percentage point will only cause 0.19% drop in potential GDP as lower rates will cushion the blow; industry bodies remain unconvinced
Washington begins writing out reliance on ratings agencies
Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and Office of Thrift Supervision begin search for new measure of creditworthiness
Basel III watered down by politics and not fit for purpose, says CLSA risk chief
The most recent draft of the Basel III proposals has been watered down by politics, according to an Asian risk officer
Minimum capital requirements increase systemic risk
Netherlands Bank research notes that Basel II capital requirements foster homogeneity
New Zealand mulls lightening banks’ reporting load
Reserve Bank of New Zealand seeks to remove doubling in reporting requirements and bring standards for Kiwi banks in line with international practice; mooted changes expected to reduce compliance cost
'Basel II was a big mistake': Larry Meyer exclusive interview
The former Fed governor, now vice-chairman of Macroeconomic Advisers, talks to Credit about the US central bank’s handling of the financial crisis, and gives his views on where US monetary policy is heading.