1 / 7

Risk Management Challenge for Basel Ⅱ & Ⅲ

Explore the significant differences between Basel III and Basel II standards, including new capital, leverage, and liquidity requirements to enhance banking sector regulation and risk management.

mfrazee
Download Presentation

Risk Management Challenge for Basel Ⅱ & Ⅲ

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Risk Management Challenge for Basel Ⅱ& Ⅲ Chau-Jung Kuo Professor, Department of Finance, NSYSU 2011.7.8. The 19th Annual Conference on PBFEAM

  2. The Significant Differences Between Basel Ⅲ and Basel Ⅱ • Basel Ⅲ proposes many new capital, leverage and liquidity standards to strengthen the regulation, supervision and risk management of the banking sector. • The capital standards and new capital buffers will require banks to hold more capital and higher quality of capital than under current Basel Ⅱ rules. • The new leverage and liquidity ratios introduce a non-risk based measure to supplement the risk-based minimum capital requirements and measures to ensure that adequate funding is maintained in case of crisis. 1

  3. 2

  4. Some Key Elements for The New Regulations Source: Bank for International Settlements, Basel Committee on Banking Supervision. 3

  5. Some Key Elements for The New Regulations (Cont’) Source: Bank for International Settlements, Basel Committee on Banking Supervision. 4

  6. Some Key Elements for The New Regulations (Cont’) Source: Bank for International Settlements, Basel Committee on Banking Supervision. 5

  7. Capital Impact of New Definition of Capital Average Capital Ratios Impact from the New Regulations * “Gross CET 1” is the ratio of gross CET 1 (without deductions) relative to current risk-weighted assets. “Net” columns show net CET 1 (with deductions) relative to new risk-weighted assets. Source: BIS, “Results of the Comprehensive Quantitative Impact Study”, Basel Committee on Banking Supervision, Dec. 2010. 6

More Related