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 implementation.
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.