Basel III: the tool that risks becoming a crutch
Implementing Basel III evenly is the next major challenge for a determined and empowered Basel Committee for Bank Supervision. June 06, 2011 | Peter HoflichWith the final framework of Basel III released and partly digested, the hottest debate at The Asian Banker Summit 2011 in Hong Kong was around the new capital accord and its implications for banks in Asia. Clearly, the accord sends the message that more and better quality capital is needed, and in that it is meant to supplement, not substitute Basel II, while also doing things such as providing better preparation for trading book securitisation. The world has changed, not only with the wounds and scars of the global financial crisis, but also with the realisation that emerging economies need to be part of both the discussions around the way forward and in implementing solutions. Now comes the challenge of implementing Basel III, which is the task of Standards Implementation Group of the Basel Committee for Bank Supervision (BCBS). But making sure that the accord is solid is also an important point for the committee. “We need a regulatory pause, we cannot continue changing regulations at the pace of the last five to ten years,” said Jose Maria Roldan, director general for banking regulation of Banco de España and chair of BCBS at Risk and Regulation Conference at The Asian Banker Summit, held on April 7th and 8th in Hong Kong, “We need to have more stable rules going forward, otherwise we are driving the industry mad and the supervisors mad.” And while Roldan is adamant that Basel III has been established and it is as permanent as the moon and the sky, there will still be room for some minor adjustments, possibly in the treatments of trade assets. Others see more possibility for change. “The devil is in the details and there may be a need for some fine tuning,” says Masmichi Kono, vice-commissioner, international affairs, FSA, Japan, although he does describe it as “a reasonably-strong, reasonably balanced agreement” that has toned down an overly-strong stance on capital that had once been a concern of his through a year of he... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asian Banker Summit 2011, Risk and Regulationsummit 2011,Risk and Regulation, Asian Banker Summit 2011,Risk and Regulation, Keywords:BCBS, FSA Japan, FSA UK, Algorithmics BCBS, FSA Japan, FSA UK, Algorithmics
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