In this study we propose a formula-based approach for determining the optimal liquidity horizon used in scaling the base expected shortfall under the Basel Committee’s market risk capital requirements ...

Learn how risk-weighted assets are used to determine solvency ratio requirements under the Basel III accord, and see how capital requirements have increased.

Many experts recognize that the government will still step in to support some financial institutions rather than allow them to go through bankruptcy. This “too-big-to-fail” doctrine remains at least ...

The publication of Basel III in December 2010 may have marked the end of an intense one-year period of consultations and rule-writing by the Basel Committee on Banking Supervision, but it was just the ...

The Basel III rules aim to decrease bank leverage and increase liquidity. In addition to capital efficiency, the rules also institute stress testing and standardize market liquidity risk. Seven years ...

Though meant to minimize risk of a future crisis, the new rules’ complexity will degrade supervision and reduce financial stability. Simple “bright line” rules are the most easily understood and ...

Michael Barr, the Federal Reserve‘s vice chair for supervision, on Tuesday spoke at the Brookings Institution in Washington, D.C., about the 2023 Basel III Endgame proposal, which would modify ...

More than two hundred banks around the globe, including one hundred and eleven, large internationally active banks, are making progress in meeting initial minimum Basel III standards. The bank ...

In recent months bank lobbyists and bank executives from SIFMA President Kenneth E. Bentsen Jr. to JPMorgan Chase CEO Jamie Dimon have written op-eds and delivered congressional testimony criticizing ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Global banking rules intended to make the financial system safer could undermine crossborder businesses by ...