The Basel Committee on Banking Supervision has been mentioned often in the media both during and after the financial crisis. This Committee provides a much-needed forum for regulators to meet at regular intervals and discuss cooperation on banking supervisory matters such as the management of capital under the Basel III capital accord. The aim of the committee is to enhance the understanding of key supervisory issues such as liquidity risk and capital management. In so doing, they strive to improve the quality of banking supervision worldwide. It is important for banks ...
Basel III a reality
Introduction The global economic crisis has provided regulators with an opportunity to fundamentally restructure the approach to risk and regulation in the financial sector. The international members of the Basel Committee on Banking Supervision have collectively agreed on reforms to "strengthen global capital and liquidity rules with the aim of promoting a more resilient banking sector". This is what is generally known as Basel III. One striking feature of the transition to Basel III is the extended period allowed for implementation. Some features of Basel III may ...
Systemic risk in financial markets
Introduction The International Monetary Fund (“IMF”) has summarised the causes of the global financial crisis in three dimensions: Set out below is an analysis of these dimensions and a review of systemic risk, including what steps Regulators can take to mitigate the effect of systemic risk. 1. Flaws in financial regulation and supervision What has become known as the “shadow banking system” became larger as it was wedged in among lightly regulated financial services businesses such as Investment Banks and Mortgage Originators. At the time traditional financial ...
Liquidity risk levels upgraded under Basel III
The Basel Committee on Banking Supervision has been mentioned often during and after the financial crisis. This Committee provides a forum for regulators to meet at regular intervals and discuss cooperation on supervisory matters relating to banks. The purpose is to enhance the understanding of supervisory issues such as liquidity risk management and to improve the quality of banking supervision globally. In jurisdictions where bank regulators are party to the Basel process, the banks supervised by these regulators should closely monitor the thinking and policy development. For ...
Positioning technology, risk management and compliance
Certain facets of business if brought together effectively and managed well, can create an environment of strategic advantage. The evolution of banking: Looking back at banking in the 1980’s, banks were focused primarily on taking deposits and making loans that were delivered via a branch emphasising face to face contact with customers. These customers were relatively unsophisticated and trusted their bankers to act in their best interest. With dramatic advancements in technology, banking customers became increasingly sophisticated, demanding an ever increasing variety of ...