By 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.
By Jane Baird
LONDON, March 2 (Reuters) – New bank capital rules could deal the final blow to any resurgence of deals in synthetic collateralised debt obligations as well as hurt the value of $330 billion of existing triple-A tranches, Goldman Sachs said.
Proposed changes to Basel II rules, effective end-2010, would increase bank capital requirements by an estimated 11.5 percent overall and 223.7 percent in the trading book, according to a study by the Bank for International Settlements.
At the height of the financial crisis, fears of a market meltdown and defaults of investment-grade credits such as Lehman Brothers drove spreads of synthetic CDOs, also known as collateralised synthetic obligations (CSOs), sharply wider.
MUMBAI, Feb 8 (Reuters) – The Indian central bank on Monday increased disclosure requirements for banks who sell securitised assets, to increase transparency for investors under the enhanced Basel II framework.
The Reserve Bank of India said banks needed to clearly state what role they had played in the securitisation of an asset, including whether they were an originator, investor, provider of credit enhancement or liquidity provider while securitising assets.
Following is the link to the notification: http://r.reuters.com/cuv38h
“In light of the wide range of risks arising from securitisation activities, which can be compounded by rapid innovation in securitisation techniques and instruments, minimum capital requirements calculated under Pillar 1 are often insufficient,” RBI said.
By Huw Jones
LONDON, Oct 14 (Reuters) – A global body with legal powers may be needed over time to enforce the world’s new financial rules, Britain’s Financial Services Authority (FSA) said on Wednesday.
By Huw Jones and Steve Slater
LONDON, Sept 8 (Reuters) – Banks face pressure to raise billions of dollars in fresh equity to meet tough new capital rules and many European lenders may need to act soon to improve quality even though the proposals will not be fully felt for several years.
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By Sumeet Desai and Anna Willard
LONDON, Sept 4 (Reuters) – World finance leaders shifted their focus from crisis fighting to banking reform on Friday as evidence mounted that the worst global recession in decades was finally drawing to a close.
U.S. Treasury Secretary Timothy Geithner called for tougher new bank capital requirements aimed at curbing some of the risky lending practices that have been blamed for the crisis, a position supported by another global banking powerhouse, Britain.
By Sumeet Desai and Matt Falloon
LONDON, Sept 4 (Reuters) – British finance minister Alistair Darling on Friday threw his weight behind U.S. proposals to strengthen the capital buffers of banks but said there were still differences of opinion among international policymakers.
LONDON, Sept 4 (Reuters) – European officials defended the globally-agreed Basel II capital rules for banks on Friday despite a U.S. call for its replacement with a sweeping new regime within three years.
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By Huw Jones
LONDON, Sept 3 (Reuters) – U.S. pressure to toughen up how banks set aside capital suggests reform of Basel II rules on capital adequacy could be drawn out for years, leaving banks in the lurch.
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BUENOS AIRES, Sept 1 (Reuters) – The idea of a simple leverage ratio to help anticipate financial crises is unlikely to work, European Central Bank governing council member Christian Noyer said on Tuesday.
