Financial Regulatory Forum

New U.S. capital framework may prove burdensome for small banks

By Bora Yagiz

NEW YORK, June 25 (Thomson Reuters Accelus) - As part of an effort to bring the United States in line with the international standards of Basel III, the Federal Reserve Board, the Office of the Comptroller of Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), on June 8, 2012, jointly proposed three rules dubbed together as the integrated regulatory capital framework.

Two of these rules, namely the proposal on Basel III, and the proposal on Standardized Approach (the approach used by small banks) would modify standards for risk-weighted assets calculation, set new minimum capital requirements and refine capital quality through various eligibility restrictions for all banks, savings associations, bank holding companies (BHC) with greater than $500 million of assets, and all savings and loan holding companies (SLHC). (more…)

Basel’s Bark May Be Slow to Bite

BASEL-BANKSBy Erik Krusch

(Westlaw Business) – Between bank capital raises and media coverage, the Basel III era may be upon us. After months of anticipation, and more than a little dread on the part of banks, it is true that the Basel Committee on Banking Supervision (Basel Committee) has finalized the Basel III bank capital ratios and other measures. But not so fast. With history as guide, it’s apparent that there is a real gap between Basel-driven standards and actual implementation.

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