Basel - Our perspective and updates

Richard Barfield gives a roundup of what we are seeing on Basel III and the outlook for 2013.

This PwC commentary summarises the key changes to the Basel Committee on Banking Supervision's finalised standard on the Liquidity Coverage Ratio and provides an initial assessment of the impact of these changes.

In a long-anticipated but not eagerly-awaited action, the three federal banking agencies released three notices of proposed rulemaking that will revise regulatory capital rules for US banking organizations. In this A Closer Look, we review and analyse the new regulatory capital rules.

Can bail-in capital bail out the banking industry? From 1 January 2013 the Basel Committee on Banking Supervision requires that all non-core equity capital instruments have a bail-in feature. Regulators and banks now have just one year to make this complex regulation workable.

This PwC publication examines a new framework ― endorsed by the G-20 during the November 2011 Cannes Summit ― designed to reduce the risks posed by key financial institutions.

This book outlines actions banks should be taking in response to Basel III, and examines the related reforms and parallel developments in accounting rules, taxation, strategy, supervision and the economy.

A focused and timely industry gathering for Capital Planning, Risk, Finance, Internal Audit Treasury, Regulatory Reporting, Strategy; within Banks, Building Societies and Deposit Takers.

The risk specialists at PwC are equipped to cover every aspect of risk management and responding to challenges in today’s Basel III world – from top-of-house governance and strategic issues, to specific modelling and compliance challenges.

On 12 September 2010 the Basel Committee announced broad agreement on a package that will significantly increase the capital and liquidity required by banks. The package has attracted huge interest around the world and maps and agreed flight-path for the sector for the next then years.

The Gropu of Governors and Heads of Supervision - the oversight body for the Basel Committee on Banking Supervision (BCBS) - announced on 26 July 2010 that it had reached broad agreement on many of the key elements of the proposed capital and liquidity reform package originally announced in December 2009. This comes shortly after the release of a consultation paper on countercyclical capital buffers.

Our detailed comments deal particularly with the capital proposals, with separate sections devoted to other selected key aspects. We also comment on accounting considerations and the proposals on liquidity.

The banking industry and its supervisors are debating some of the most important regulatory changes in recent history. These changes are likely to have major implications. The banking sector has already taken extensive steps to strengthen capital ratios, to lower leverage and to reduce liquidity risk.

The future started yesterday. With bank revenues increasing again, particularly in investment banking, there is a danger that the lessons learned in the stress environment created by the financial crisis will be forgotten and structural issues within both the industry and individual institutions will be put to one side, only to resurface in the next crisis.

On 17 December, the Basel Committee on Banking Supervision released two consultation papers with proposals for strengthening global capital and liquidity regulations with the goal of promoting a more resilient international banking sector.