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Basel Iii

All articles tagged with #basel iii

finance1 year ago•2 min saved

"Federal Reserve Chair Powell Plans Major Overhaul of Bank Capital Rules"

Federal Reserve Chair Jay Powell surprised Wall Street by indicating a potential retreat on proposed banking rules that would require larger banks to increase their capital reserves. The rules, known as the "Basel III Endgame," have faced opposition from bank CEOs, industry lobbyists, and lawmakers who fear the impact on lending and potential financial crises. Powell's comments suggest that the proposed rules may be scaled back or reworked, signaling a significant shift in bank regulation.

via The New York Times|

#banking-rules #basel-iii #capital-requirements

finance1 year ago•5 min saved

"US Regulators to Ease Basel Capital Rules, Boosting Banks and Clean Energy"

US regulators are expected to significantly reduce the extra capital banks must hold under the proposed Basel III rule, which aims to overhaul how banks with more than $100 billion in assets calculate the cash they must set aside to absorb potential losses. The expected changes include reducing the risk weights for fee income associated with lending services, scrapping or reducing higher risk weights on mortgages to low-income borrowers and on renewable energy tax credits. The proposal has faced aggressive pushback from Wall Street, with banks mounting advertising and grassroots campaigns, lobbying Congress, and signaling potential lawsuits. Fed officials, including Chair Jerome Powell, are working on rewriting the proposal, with the possibility of reproposing the rule still on the table.

via Reuters|

#banking-industry #basel-iii #capital-requirements

finance1 year ago•1 min saved

"Regulators Anticipate Major Changes to Basel Capital Rules Amid Bank Resistance"

Federal Reserve Chairman Jerome Powell expects "broad, material" changes to the contentious Basel III endgame proposal, acknowledging industry concerns about its cost and economic impact. He indicated that regulators are reconsidering the proposal and may seek broad support for the final product, not ruling out the possibility of reproposing the rule for further feedback, which could lead to significant delays. This proposal aims to raise large bank capital requirements, but banks have strongly opposed it, citing it as misguided and overly costly.

via Yahoo Finance|

#bank-regulations #basel-iii #capital-requirements

business2 years ago•1 min saved

"Bank Capital Rules: The Basel III Endgame and Regulatory Concerns"

Federal regulators are proposing to increase capital requirements for U.S. banks to prevent taxpayer-funded bailouts in emergencies, drawing criticism from a diverse coalition including banks, community groups, and racial justice advocates. The proposal comes in response to the demise of several banks due to rising interest rates and losses from cryptocurrency businesses. Banks argue that holding more capital restricts lending and hurts economic growth, while other groups, such as pension funds and green energy advocates, are also concerned about the potential economic ramifications.

via The New York Times|

#banks #basel-iii #business

finance2 years ago•19 min saved

"Governor Bowman Advocates for Substantive Changes in Bank Capital Reform"

Governor Bowman discussed proposed changes to bank capital rules in the United States, emphasizing the need to carefully consider the impact of increased capital requirements on U.S. businesses and the economy. She highlighted concerns about over-calibration and the lack of regulatory tailoring in the proposal, and suggested modifications to mitigate these issues. Bowman also addressed technical areas of change, such as diversification benefits, market risk capital rule calibration, and alignment of risk weights and credit risk. She emphasized the importance of balancing the benefits and costs of capital requirements and the need to consider broader regulatory implications and international comparability.

via Federal Reserve|

#bank-capital-reform #basel-iii #finance

finance2 years ago•1 min saved

Bank CEOs Sound Alarm: Recession Imminent

Bank CEOs are warning about a potential recession as they express concerns over the Basel III endgame, a package of new banking regulations that would increase the level of capital banks are required to hold. The proposal has faced backlash from lawmakers and CEOs, who argue that it would limit lending and force higher interest rates on loans. However, financial regulators argue that higher capital requirements would strengthen banks during financial stress and reduce the risk of taxpayer-funded bailouts. The Basel III endgame has not been finalized and the rule-making process has been extended to January 2024.

via CNN|

#bank-ceos #banking-regulations #basel-iii

finance2 years ago•2 min saved

"Regulators Introduce Game-Changing Capital Rules for Big Banks, Impacting Buybacks and CEO Concerns"

U.S. regulators have proposed sweeping changes to banks' capital requirements, aiming to address evolving international standards and recent regional banking crises. The changes, which incorporate parts of the Basel III regulations, will raise the level of capital that banks need to maintain against potential losses. While the heightened requirements apply to all banks with at least $100 billion in assets, the biggest and most complex banks are expected to be impacted the most. The proposal also aims to eliminate a regulatory loophole that allowed regional banks to exclude unrealized losses and gains from their capital ratios, following the failure of Silicon Valley Bank in March.

via CNBC|

#banks #basel-iii #capital-requirements

finance2 years ago•6 min saved

Regulators Prepare to Increase Scrutiny on Big Banks

President Biden's regulators are pushing for higher capital requirements for banks to reduce their reliance on debt and deposits and provide a greater cushion against setbacks. However, the banking industry is fiercely opposing the move, arguing that they have already strengthened their defenses since the 2008 financial crisis. The proposal is based on international standards agreed to at the Basel Committee for Banking Supervision, which have been branded as the "Basel III endgame." The rules are not expected to take effect for years, but banks are concerned that they will hinder lending and impede growth at an especially fragile time for the economy.

via POLITICO|

#banks #basel-iii #capital-requirements

finance2 years ago•2 min saved

Senators push for stronger bank executive accountability through clawback legislation.

Senate Democrats, led by Elizabeth Warren, are urging federal banking regulators to implement stronger capital requirements for banks by aligning with the international "Basel III" framework. The lawmakers blamed lobbyists and some Republicans for efforts during the Trump administration to ease capital requirements established after the 2008 financial crisis. They also pointed to the Fed's March 2020 decision to simplify capital rules for large banks as evidence of a drawdown of regulations. The senators are pushing for regulators to fully implement Basel III to safeguard against more bank failures and fend off aggressive lobbying from Wall Street.

via CNBC|

#banking-regulations #basel-iii #capital-requirements

finance2 years ago•3 min saved

The Transatlantic Banking Crisis: Impact and Likelihood of a Lehman-like Collapse.

Lawmakers in the European Union believe that US regulators made mistakes in failing to prevent the collapse of Silicon Valley Bank and other financial institutions. They also believe that this is a moment for some self-assessment in Europe. The EU recognizes that this is not the time to be complacent and that they have to remain vigilant. One of the main discussions in the EU in recent days has been the need to improve the European Banking Union. The US lacks some controls, and the EU believes that the US should learn from some of the regulatory works put in place in the euro area since the financial crisis.

via CNBC|

#banking-sector #basel-iii #european-union