The main points of Basel III:

Increased capital reserves: In addition to the existing system of capital regulation, two new Items are added, namely

capital buffer, which comes into force in cases where the activities of the bank increase very rapidly

countercyclical buffer, which should prevent the tendency that capital reserves according to the existing rules will be small during booms and large in slumps

Leverage rule: This is a rule which is aimed to prevent too small capital reserves even in cases where assets have low risk and therefore would not give rise to building up reserves by using the existing rules
Liquidity rules: High quality assets should be large enough to cover one month net cash out- flow.

	Criado por dekanola mais de 10 anos atrás

university Global Banking Notas sobre Revision Notes 2, criado por dekanola em 10-12-2013.