1 Basel II Tamer Bakiciol Nicolas Cojocaru-Durand Dongxu Lu
2 Roadmap Background of Banking Regulation and Basel Accord Basel II: features and problems The Future of Banking regulations
3 Background of Banking Regulation and Basel Accord
4 Banking Supervision and Capital Regulation Purpose of banking supervision is to ensure that banks operate in a safe and sound manner. to ensure that banks "hold capital and reserves sufficient to support the risks that arise in their business". sound practices for banks' risk management Regulatory Capital list of the elements that count as capital for regulatory purposes the set of conditions these elements must comply with in order to be considered eligible. Risk-Weighted Assets all exposures after conversion into assets and after having received supervisory risk weights according to their degree of risk. A supervisory risk weight is a percentage used to convert the nominal amount of a credit exposure into an amount of 'exposure at risk'. Economic Capital: trade off between profitability and insolvency
6 What is the Basel Committee? Basel Committee on Banking Supervision was established by the central-bank governors of the G10 countries in 1974 Belgium, Canada, France, Germany, Italy, Japan, Luxemburg, Netherlands, Spain, Sweden, Switzerland, UK, US Meets at the Bank for International Settlements in Basel Its objective was to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. Not a formal supranational supervisory authority and conclusions do not have legal force. Formulates broad supervisory standards and guidelines First major result was the 1988 Capital Accord 1997 developed a set of "Core Principles for Effective Banking Supervision ", which provides a comprehensive blueprint for an effective supervisory system.
7 Basel Capital Accords Chronology Basel I Capital Accord (1988) Amendment to the capital accord to incorporate market risks (1996) Basel II Capital Accord First Consultative Paper (1999) Second Consultative Paper (2001) Third Consultative Paper (2003) Final Document (2004) Basel II: International Convergence of Capital Measurement and Capital Standards: a Revised Framework Amendment (2005) The Application of Basel II to Trading Activities and the Treatment of Double Default Effects Final Version(2006) Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised Framework - Comprehensive Version Proposed revisions to the Basel II market risk framework (2008)
8 Motives for Basel I Deregulation period after 1980 Increase in International presence of banks Decline in capital ratios of Banks just as increase in riskiness Risk posed to the stability of the global financial system by low capital levels of internationally active banks Competitive advantage accruing to banks subject to lower capital requirements Create a level of playing field
9 Motives and Objectives for Basel II Motives: Problems with Basel I Club-rule (being a member of OECD) is not meaningful in terms of riskiness Broad brush and lacks risk differentiation: One size fits all Divergence between Basel I risk weights and actual economic risks Regulatory arbitrage (Solved?) Inadequate recognition of advanced credit risk mitigation techniques(securitization and CDS) Objectives Eliminate regulatory arbitrage by getting risk weights right Align regulation with best practices in risk management Provide banks with incentives to enhance risk measurement and management capabilities. Basel II is not intended simply to ensure compliance with a new set of capital rules. Rather, it is intended to enhance the quality of risk management and supervision. Jaime Caruana Governor of the Banco de España Former Chairman of Basel Committee
10 Features and Problems of Basel II
11 3 Pillars of Basel II The second pillar supervisory review allows supervisors to evaluate a bank s assessment of its own risks and determine whether that assessment seems reasonable. It is not enough for a bank or its supervisors to rely on the calculation of minimum capital under the first pillar. Supervisors should provide an extra set of eyes to verify that the bank understands its risk profile and is sufficiently capitalized against its risks. The third pillar market discipline ensures that the market provides yet another set of eyes. The third pillar is intended to strengthen incentives for prudent risk management. Greater transparency in banks financial reporting should allow marketplace participants to better reward well-managed banks and penalize poorly-managed ones. Jaime Caruana
14 Bank Capital Definition of regulatory bank capital established in 1988 under Basel I remains largely the same today and is also applicable under Basel II comprised of three levels (or 'tiers') of capital. An item may be classified under one of these tiers if it satisfies specific eligibility criteria. eligibility criteria for capital components ensure the similarity across all the countries. This has lead to greater comparability among banks, especially among those that are internationally active. criteria are: permanence, freedom (the ability to absorb losses on an ongoing basis), subordination to depositors and other creditors The extent to which capital instruments meet these broad criteria will determine the tier of capital in which they are categorized: Tier 1 or Tier 2
15 Tier 1 Capital Deemed to have highest capacity to absorbing losses in order to allow banks continue to operate on ongoing basis common shareholder equity Fully paid therefore available to absorb losses permanently Should losses occur, it is the common shareholders who bear such losses first Disclosed Reserves Published reserves derived from post-tax retained earnings and after dividend payments non-cumulative perpetual preferred stock
16 Tier 2 & Tier 3 Capital Tier 2 cannot exceed 100% of Tier 1 capital subordinated debt undisclosed reserves: availability is more uncertain general loan loss reserves hybrid debt equity capital instruments Tier 3 can be used to meet a proportion of the capital requirements of market risk Consist of subordinated debt with some limitations
18 Credit Risk Standardized Approach Internal Ratings Based Approach (IRB) Foundation Advanced Credit risk mitigation CDS & Counterparty risk Securitization
19 Standardized Approach Based on external credit ratings Apply fixed risk weighting to assets based on: Type of entity (Sovereign, Commercial bank, Corporates, retail, etc.) Credit rating (AAA, Aaa,, Bbb)
20 Standardized Approach Pros: Simple Doesn t require extensive modeling Attractive for smaller banks with less experience Uniform across banks Cons: Less flexible and perhaps realistic Rests on credit ratings devised by external agencies (Moody s, S&P, Fitch)
21 Credit Ratings vs. Risk Weighted Assets
22 Credit Ratings: Sovereigns
24 Internal ratings based Based on internal loss models Two approaches Foundation: Bank produces own loss probability models (i.e. own credit ratings), but uses prescribed estimates of Loss Given Default (LGD) based on ratings Advanced: Bank uses own loss probability models and LGD models
25 IRB Example Correlation (R) = 0.12 (1 EXP(-50 PD)) / (1 EXP(-50)) [1 (1 EXP(-50 PD)) / (1 EXP(-50))] Maturity adjustment (b) = ( ln(pd))^2 Capital requirement (K) = [LGD N[(1 R)^-0.5 G(PD) + (R / (1 R))^0.5 G(0.999)] PD x LGD] x (1 1.5 x b)^-1 (1 + (M 2.5) b) Risk-weighted assets (RWA) = K x 12.5 x EAD
27 Internal Ratings Based Pros: More realistic Favored by larger banks, mandatory for large US banks Cons Similar to VaR: modeling rare events Large investment needed to put in place and maintain Large data requirement (5+ years) More discretion to banks as to how they value their risks
28 Standardized vs. IRB: by pd For small prob. of defaults large difference in risk weighting Source: Wikipedia, en.wikipedia.org/foundation_irb
29 Standardized vs. IRB: by credit
30 Adverse Selection
31 Securitization and credit protection Just like you can buy life insurance, banks can protect themselves against defaults by buying Credit Default Swaps (CDS) This exposes them to counterparty risk however They can also get rid of bad loans/risky exposure (even CDS) by repackaging assets in CDOs which are housed off balancesheet Loans SIV CDO tranches L1 L3 L5 L2 L4 B1 AAA B2 AA
32 CDO structure Using low-rated bonds, 2/3 of the new structure has higher rating If pd doubles (5% to 10%), the Senior tranche retains its rating, but not the rest
33 Regulatory arbitrage In hindsight, SIV s enabled banks to house risky assets outside the scope of Basel rules Because of the diversification coming from the pooling of risky assets, the tranches issued had higher credit ratings Limited provisions were made for the liquidity clause banks had with their SIV s especially if they issued short-term assets (ABCP) Combined, this reduced regulatory capital to be held and enabled more risk-taking
34 Market Risk Pillar 1 Pillar 2 Pillar 3 Minimum Capital Requirements Supervisory Review Market Discipline Credit Risk Market Risk Operational Risk Risk of losses of on- and off- balance sheet positions arising from movement in market price (interest rate, equity positions, foreign exchange and commodity risk)
35 Market Risk Market Risk General Market Risk Specific Risk VaR * Regulatory Coefficient Standardized Internal Model 10 day time horizon 99% confidence level May range from 3.0 to 4.0
36 Value at Risk For market risk the preferred approach is VaR (value at risk).
37 Problems with VaR Does not give the actual size of loss Fat tail Problem Created an incentive to take excessive but remote risks
38 Conditional VaR (CVaR) The CVaR at q% level" is the expected return on the portfolio in the worst q% of the cases.
39 Stress Testing and Scenario Analysis Test the portfolio under some stresses(e.g.): What happens if the market crashes by more than x% this year? What happens if interest rates go up by at least y%? What happens if oil prices rise by 200%?
40 Operational Risk Pillar 1 Pillar 2 Pillar 3 Minimum Capital Requirements Credit Risk Market Risk Operational Risk Supervisory Review Market Discipline Risk arising from execution of a company's business functions (e.g. legal risk)
41 Operational Risk Increasing sophistication Basic Indicator Approach Operational Risk Capital= α * Gross Revenue α is a percentage set by regulator Standardized Approach Operational Risk Capital= β * Gross Revenue per Business Line β is a percentage set by regulator Advanced Measurement Approach Operational Risk Capital= the risk measure generated by the bank s own operational risk measurement system
43 Supervisory Review Principle 1: Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels. Principle 2: Supervisors should review and evaluate banks internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process. Principle 3: Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored.
45 Market Discipline The third pillar greatly increases the disclosures that the bank must make. This is designed to allow the market to have a better picture of the overall risk position of the bank and to allow the counterparties of the bank to price and deal appropriately.
46 Beyond Basel II
47 Rethinking Basel II Even theoretically sound rules may be suboptimal because of compliance costs and supervisory limitations: Cost of Basel II? Basel 2 Risk rating will be determined by the assessments of external credit rating agencies. Debatable, after shortcomings exposed by subprime crisis Macroeconomic: Procyclicality More measures of system risk:covar
48 16 April 2008 Basel Committee announces steps to strengthen the resilience of the banking system The Committee reiterates the importance of implementing the Basel II Framework as it better reflects the types of risks banks face in an increasingly market-based credit intermediation process The committee acknowledged the deficiencies in the Framework. Further strengthening certain aspects of the Framework: higher capital requirements for certain complex structured credit products, such as so-called "resecuritisations" or CDOs of ABS, which have produced the majority of losses during the recent market turbulence. strengthen the capital treatment of liquidity facilities extended to support off-balance sheet vehicles such as ABCP conduits. strengthen the capital requirements in the trading book. Global banks' trading assets have grown at double digit rates in recent years, and the proportion of complex, less liquid credit products held in the trading book has likewise increased rapidly.
49 16 April 2008 Basel Committee announces steps to strengthen the resilience of the banking system The current value-at-risk based treatment for assessing capital for trading book risk does not capture extraordinary events that can affect many such exposures. Measures will be taken to include potential event risks in the trading book. The market turmoil has revealed significant risk management weaknesses at banking institutions. Issuance of Pillar 2 guidance in a number of areas to help strengthen risk management and supervisory practices: management of firm-wide risks banks' stress testing practices capital planning processes the management of off-balance sheet exposures and associated reputational risks risk management practices relating to securitization activities supervisory assessment of banks' valuation practices.
50 16 April 2008 Basel Committee announces steps to strengthen the resilience of the banking system Banks need to have strong liquidity cushions to weather prolonged periods of financial market stress and illiquidity Weaknesses in bank transparency and valuation practices for complex products have contributed to the build-up of concentrations in illiquid structured credit products and the undermining of confidence in the banking sector. The Committee will promote enhanced disclosures relating to complex securitization exposures, ABCP conduits and the sponsorship of off-balance sheet vehicles.
Bank Capital Adequacy under Basel III Objectives The overall goal of this two-day workshop is to provide participants with an understanding of how capital is regulated under Basel II and III and appreciate
Basel Committee on Banking Supervision Reducing excessive variability in banks regulatory capital ratios A report to the G20 November 2014 This publication is available on the BIS website (www.bis.org).
Asset-backed commercial paper (ABCP) Asset-backed security (ABS) Asset-backed securities index (ABX) Auction rate security Basel II Call (put) option Carry trade Commercial paper collateralized by a pool
MARKET RISK CAPITAL DISCLOSURES REPORT For the quarter ended March 31, 2013 Table of Contents Section Page 1 Morgan Stanley... 1 2 Risk-based Capital Guidelines: Market Risk... 1 3 Market Risk... 1 3.1
BASEL III PILLAR 3 CAPITAL ADEQUACY AND RISKS DISCLOSURES AS AT 30 SEPTEMBER 2015 COMMONWEALTH BANK OF AUSTRALIA ACN 123 123 124 5 NOVEMBER 2015 This page has been intentionally left blank Introduction
(unaudited) 1. SCOPE OF APPLICATION Basis of preparation This document represents the Basel Pillar 3 disclosures for Canadian Tire Bank ( the Bank ) and is unaudited. The Basel Pillar 3 disclosures included
Page 1 of 9 Capital adequacy ratios for banks - simplified explanation and example of calculation Summary Capital adequacy ratios are a measure of the amount of a bank's capital expressed as a percentage
Stress testing and capital planning - the key to making the ICAAP forward looking Athens, *connectedthinking Agenda Introduction on ICAAP requirements What is stress testing? Regulatory guidance on stress
Basel III Pillar 3 CAPITAL ADEQUACY AND RISK DISCLOSURES AS AT 30 SEPTEMBER 2014 COMMONWEALTH BANK OF AUSTRALIA ACN 123 123 124 5 NOVEMBER 2014 1 Scope of Application The Commonwealth Bank of Australia
1) What kind of risk on settlements is covered by 'Herstatt Risk' for which BCBS was formed? a) Exchange rate risk b) Time difference risk c) Interest rate risk d) None 2) Which of the following is not
TD Bank Financial Group Q4/08 Guide to Basel II 1. OVERVIEW General Information on Basel can be found on the Canadian Bankers Association website at www.cba.ca. Choose Issues, Standards, Rules and Guidelines
page 201-1 Introduction, Scope of Application, and Calculation of Requirements Topic Table of contents Location in Transitional Directive * Page Introduction 201-2 Scope of Application Sections 20 39 201-3
- March 2008 Paper Series of Risk Management in Financial Institutions Securitized-Product Investment: Risk Management Perspectives * Financial Systems and Bank Examination Department Bank of Japan Please
ZAG BANK BASEL II & III PILLAR 3 DISCLOSURES December 31, 2014 Zag Bank (the Bank ) is required to make certain disclosures to meet the requirements of the Office of the Superintendent of Financial Institutions
Weaknesses in Regulatory Capital Models and Their Implications Amelia Ho, CA, CIA, CISA, CFE, ICBRR, PMP, MBA 2012 Enterprise Risk Management Symposium April 18-20, 2012 2012 Casualty Actuarial Society,
Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc. Introduction Basel II is an international framework on capital that applies to deposit taking institutions in many countries, including Canada.
EASY FOREX TRADING LTD DISCLOSURE AND MARKET DISCIPLINE IN ACCORDANCE WITH CAPITAL ADEQUACY AND THE REQUIREMENTS ON RISK MANAGEMENT 31 st December 2012 Introduction For the purposes of Directive DI144-2007-05
The Ratio of Leverage When you combine ignorance and leverage, you get some pretty interesting results. Warren Buffett 1 What is leverage? definition of leverage: debt to equity ratio Basel Commitee: One
Chapter 11 Economic Analysis of Banking Regulation Lecture 1 Asymmetric Information and Bank Regulation Adverse Selection and Moral Hazard are the two concepts that underlie government regulation of the
Basel Committee on Banking Supervision Capital requirements for banks equity investments in funds December 2013 This publication is available on the BIS website (www.bis.org). Bank for International Settlements
ICAAP Required Capital Assessment, Quantification & Allocation Anand Borawake, VP, Risk Management, TD Bank email@example.com Table of Contents Key Takeaways - Value Add from the ICAAP The 3 Pillars
General Bank of Canada Pillar Three Disclosures The Basel Committee of Banking Supervision sets out expectations for the public qualitative disclosure of a bank s risk management objectives and policies,
Bank Regulatory Capital: Why We Need It Very simply: to limit risk and reduce our potential, unexpected losses. Unlike normal companies, banks are in the business of issuing loans to individuals and businesses
TD Bank Financial Group Q1/08 Guide to Basel II 1. OVERVIEW General Information on Basel can be found on the Canadian Bankers Association website at www.cba.ca. Choose Issues, Standards, Rules and Guidelines
A newsletter on risk mitigation instruments for infrastructure investment in the Mediterranean Issue 2, October 2013 The Investment Security in the Mediterranean (ISMED) Support Programme seeks to increase
June 28, 2013 Comments on the Basel Committee on Banking Supervision s Consultative Document: Supervisory framework for measuring and controlling large exposures Japanese Bankers Association We, the Japanese
OFFICE OF FINANCIAL RESEARCH BRIEF SERIES 15-4 June 11, 215 More Transparency Needed For Bank Capital Relief Trades By Jill Cetina, John McDonough, and Sriram Rajan1 Banks have significant incentives to
APRA 30 April 2012 The Basel II Capital Accord principles took effect in Australia on 1 January 2008. The framework for the application of Basel II in Australia is comprised of three pillars: Pillar 1:
Capital Management Standard Banco Standard de Investimentos S/A Level: Entity Type: Capital Management Owner : Financial Director Approved by: Board of Directors and Brazilian Management Committee (Manco)
Capital Adequacy Ratio Highlights 204 Status of Consolidated Capital Adequacy of Mizuho Financial Group, Inc. 206 Scope of Consolidation 206 Consolidated Capital Adequacy Ratio 208 Risk-Based Capital 210
Basel II Questions and Answers FINANCIAL SERVICES Index Introduction 7 Basel II Accord 8 KPMG support regarding Basel II implementation 11 General questions on Basel II 13 1. What is the Bank for International
B o a r d o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e Sy s t e m Date: June 4, 2012 To: Board of Governors From: Governor T arullo Initials Subject: Final Market Risk Capital Rule Attached
COMPUTERSHARE TRUST COMPANY OF CANADA BASEL III PILLAR 3 DISCLOSURES December 31, 2013 Table of Contents Scope of Application... 3 Capital Structure... 3 Capital Adequacy... 3 Credit Risk... 4 Market Risk...
CITIGROUP INC. BASEL II.5 MARKET RISK DISCLOSURES AS OF AND FOR THE PERIOD ENDED MARCH 31, 2013 DATED AS OF MAY 15, 2013 Table of Contents Qualitative Disclosures Basis of Preparation and Review... 3 Risk
PUBLIC DISCLOSURE OF STATUS AS AT 31/12/2012 Introduction The Bank of Italy s Regulation concerning prudential supervision for securities brokerage companies [Italian legal entity acronym = SIM] (Title
UBS Saudi Arabia King Fahad Road Tatweer Towers Tower 4, 9 th Floor PO Box 75724 Riyadh 11588 Kingdom of Saudi Arabia Tel. +966 (0) 11 203 8000 www.ubs.com UBS Saudi Arabia (A SAUDI JOINT STOCK COMPANY)
Certificate in Social Banking Money and Society Banking Regulation Pros and Cons Professor Dr. Gregor Krämer Chair for Banking, Finance, and Accounting Alanus University of Arts and Social Sciences, Alfter,
Basel 3: A new perspective on portfolio risk management Tamar JOULIA-PARIS October 2011 1 Content 1. Basel 3 A complex regulatory framework With possible unintended consequences 2. Consequences on Main
The challenge of liquidity and collateral management in the new regulatory landscape ICMA Professional Repo and Collateral Management Course 2012 Agenda 1. Background: The repo product under pressure 2.
S t a n d a r d 4. 4 a M a n a g e m e n t o f c r e d i t r i s k Regulations and guidelines THE FINANCIAL SUPERVISION AUTHORITY 4 Capital adequacy and risk management until further notice J. No. 1/120/2004
VII COMMERCIAL PAPER BACKED BY CREDIT CARD RECEIVABLES INTRODUCTION Asset-backed commercial paper (ABCP) conduits issue short-term notes backed by trade receivables, credit card receivables, or medium-term
SECTION II: STANDARDS FOR ACCOUNTING CONSOLIDATION A. Introduction It is widely recognized that a major contributing factor to the credit market crisis was the manner and extent to which risks associated
A Fundamental Review of Capital Charges Associated with Trading Activities Grahame Johnson Introduction Strengthening the capital that banks are required to hold to absorb losses from their trading and
STANDARDS OF SOUND BUSINESS PRACTICES CAPITAL MANAGEMENT 2005 The. All rights reserved Capital Management Page 2 CAPITAL MANAGEMENT A. PURPOSE This document sets out the minimum policies and procedures
The Northern Trust Company, Canada Basel III Pillar lll Disclosure as at December 31, 2015 Subject to Board Approval Posting date: January 29, 2016 Contents NORTHERN TRUST OVERVIEW AND SCOPE OF APPPLICATION.
Checklist for Credit Risk Management I. Development and Establishment of Credit Risk Management System by Management Checkpoints - Credit risk is the risk that a financial institution will incur losses
Enhancing Risk Management and Governance in the Region s Banking System to Implement Basel II and to Meet Contemporary Risks and Challenges Arising from the Global Banking System Training Program ~ 8 12
President, De Nederlandsche Bank Chairman, Basel Committee on Banking Supervision 118 27. Mai 2008 Banking Supervision in Europe: Developments and Challenges 1. The banking system has gone through major
Conceptual Framework: What Does the Financial System Do? 1. Financial contracting: Get funds from savers to investors Transactions costs Contracting costs (from asymmetric information) Adverse Selection
Basel Committee on Banking Supervision Basel III definition of capital - Frequently asked questions July 2011 Copies of publications are available from: Bank for International Settlements Communications
Standard Chartered Bank (Thai) PCL & its Financial Business Group Registered Office: 90 North Sathorn Road, Silom Bangkok, 10500, Thailand Overview During 2013, the Bank of Thailand ( BOT ) published the
2014 EU-wide Stress Test Bank Name LEI Code DK - Sydbank GP5DT10VX1QRQUKVBK64 DK NUK_WL_NR_XX version 1809014 No restructuring 2014 EU-wide Stress Test 2014 EU-wide Stress Test Summary Adverse Scenario
The Goldman Sachs Group, Inc. and Goldman Sachs Bank USA 2015 Annual Dodd-Frank Act Stress Test Disclosure March 2015 2015 Annual Dodd-Frank Act Stress Test Disclosure for The Goldman Sachs Group, Inc.
COMMERZBANK Capital Update - EU Wide Stress Test Results. COMMERZBANK was subject to the 2011 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Bundesanstalt
of ALTERNA BANK 1. Scope of Application CS Alterna Bank, a member of the Canada Deposit Insurance Corporation ( CDIC ), operates under the name Alterna Bank. It is a Schedule 1 Bank and received letters
Basel II Pillar 3 Market Discipline and Transparency Simon Topping Hong Kong Monetary Authority 1 Outline of Presentation Market discipline and transparency the theory The challenges of achieving market
REMARKS ON THE BASEL CAPITAL FRAMEWORK AND TRADE FINANCE, 27 FEBRUARY 2014 SESSION 4 Mr. Andrew CORNFORD Research Fellow Financial Markets Center 1 Webster2014.B3&TF Remarks on the Basel Capital Framework
Risk & Compliance the way we see it Credit Risk Management: Trends and Opportunities The Current State of Credit Risk Management 1 Overview The crisis exposed the shortcomings of existing risk management
BMO Financial Corp. and BMO Harris Bank N.A. 206 Comprehensive Capital Analysis and Review Dodd-Frank Act Company-Run Stress Test Supervisory Severely Adverse Scenario Results Disclosure June 23, 206 Overview
An Insight Paper by CRISIL GR&A ANALYSIS Fundamental Review of the Trading Book: A Revised Market Risk Framework Second Consultative Document by the Basel Committee on Banking Supervision The Basel Committee
Nationwide Building Society Treasury Division One Threadneedle Street London UK EC2R 8AW Tel: +44 1604 853008 firstname.lastname@example.org Uploaded via BCBS website 21 March 2014 Dear Sir or Madam BASEL
1. Overview Pillar 3 Disclosure March 2014 China International Capital Corporation (UK) Limited Pillar 3 Disclosure The European Union s Capital Requirements Directive ( CRD ) came into effect on 1 January
Key learning points I What do banks do? Banks provide three core banking services Deposit collection Payment arrangement Underwrite loans Banks may also offer financial services such as cash, asset, and
EXTRACT FROM BASEL III: A GLOBAL REGULATORY FRAMEWORK FOR MORE RESILIENT BANKS AND BANKING SYSTEMS DEFINITIONS OF COMMON EQUITY TIER 1, ADDITIONAL TIER I AND TIER II CAPITAL I. Common Equity Tier 1 (CET1)
1 Interview with Gabriel Bernardino, Chairman of EIOPA, conducted by Anke Dembowski, Institutional Money (Germany) 1. Insurance companies vs. Occupational Retirement Provision (IORPs) EIOPA has submitted
Superintendency of Banks and Financial Institutions Chile ROAD MAP GUIDELINES: TRANSITION TO BASEL II Consultative Document January 2005 INDEX INTRODUCTION...3 1. Pillars of the New Capital Framework...3
Richard Rosen Federal Reserve Bank of Chicago The views expressed here are my own and may not represent those of the Federal Reserve Bank of Chicago or the Federal Reserve System. Why was this crisis different
1. INTRODUCTION The purpose of this document is to provide the information in accordance with Pillar 3 directives under Monetary Authority of Singapore ( MAS ) Notice 637 on Risk Based Capital Adequacy
February 2013 Capital Market Services UK Limited Pillar 3 Disclosure Contents 1.0 Overview 2.0 Frequency and location of disclosure 3.0 Verification 4.0 Scope of application 5.1 Risk Management objectives
L. S. NO. 2 TO GAZETTE NO. 43/2006 L.N. 228 of 2006 B3157 Division 9 Specific requirements for certain portfolios of exposures 197. Purchased receivables An authorized institution shall classify its purchased
Overview of Goldman Sachs January 2016 Cautionary Note on Forward-Looking Statements This presentation may include forward-looking statements. These statements are not historical facts, but instead represent
Year end results Basel II Pillar 3 Disclosures 2010 Notes about this report Overview of Basel II and Pillar 3 Barclays has applied the Basel II framework since 2008. The Basel accord is made up of three
Summary Supporting Statement for the Recordkeeping and Reporting Requirements Associated with Regulation Y (Capital Plans) (Reg Y-3; OMB No. 700-0342) (Docket No. R-425) (RIN 700-AD77) The Board of Governors
Your consent to our cookies if you continue to use this website.