In December 2010 and January 2011, the Basel
Committee on Banking Supervision (‘BCBS’) published details of changes, in line
with G20 decisions, to global standards on capital and liquidity requirements.
As these changes are wide-ranging and complex, AFME has produced a pack of
explanatory materials covering the key elements of Basel III and some of the
outstanding questions that will need to be addressed in run-up to
The General Briefing note
provides an overview of the process and the main changes. Supporting and
augmenting this are six more detailed notes covering the six key elements of the
package - Definition of capital, Leverage ratio, Counterparty credit risk, Net
stable funding ratio, Liquidity coverage ratio and Counter-cyclical capital
buffers. These notes also link to the technically detailed case studies that
have been developed to illustrate the challenges and potential impact of the new
standards on banks’ product and business lines.
Finally, the “Technical
Issues List” is a guide to the wide range of outstanding questions that remain
and has been submitted to the BCBS for its consideration. This will be updated
as more clarity emerges.