Download or read book Adapting to Basel III and the Financial Crisis written by Peter Miu and published by . This book was released on 2012 with total page 295 pages. Available in PDF, EPUB and Kindle. Book excerpt: As a result of Basel III and Solvency II, all financial institutions will have to re-think their business planning and strategic management practices whilst also trying to meet their income needs. Adapting to Basel III and the Financial Crisis examines how the financial sector is tackling these challenges, drawing on a variety of examples from the banking and insurance industries.

Download or read book Adapting to Basel III and the Financial Crisis written by Peter Miu and published by . This book was released on 2012 with total page 295 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book From Crisis to Crisis written by Ross P. Buckley and published by Kluwer Law International B.V.. This book was released on 2011-01-01 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global financial system has proven increasingly unstable and crisis-prone since the early 1980s. The system has failed to serve either creditors or debtors well. This has been reinforced by the global financial crisis of 2008, where we have seen systemic weaknesses bring rich countries to the brink of bankruptcy and visit appalling suffering on the poorest citizens of poor countries. Yet the regulatory responses to this crisis have involved little thinking from outside the box in which the crisis was delivered to the world. This book presents a powerful indictment of this regulatory failure and calls for greatly increased attention to international financial law and analyses new regulatory measures with the potential to make a new recognition of the principles that ought to underlie it. Using a historical approach that compares the various financial crises of the past three decades, the authors clearly show how misconceived economic policy responses have paved the way for each next 'crash'. Among the numerous topics that arise in the course of this revealing analysis are the following: overvalued exchange rates; excess liquidity in rich countries; premature liberalisation of local financial markets; capital controls; derivatives markets; accounting standards; credit ratings and the conflicts in the role of credit rating agencies; investor protection arrangements; insurance companies; and payment, clearing and settlement activities. The authors offer detailed commentary on: the role of multilateral development banks, the IMF and the WTO in responding to crises; the role of the Basel Accords, the Financial Stability Forum and Board, and the responses of the European Commission, the US, and the G20 to the most recent crisis. The book concludes by exploring systemic game-changing reforms such as bank levies, financial activities taxes and financial transaction taxes, and a global sovereign bankruptcy regime; as well as measures to remove the currency mismatches from the balance sheets of developing countries. Apart from its great usefulness as a detailed introduction to the international financial system and its regulation, the book is enormously valuable for its clear identification of the areas of regulatory failure, and its analysis of new regulatory approaches that offer the potential for a genuinely more stable system. Banking and investment policymakers at every level, the lawyers that serve these markets and the regulators that seek to regulate them, cannot afford to neglect this book.

Download or read book Basel III Liquidity Regulation and Its Implications written by Mark Petersen and published by Business Expert Press. This book was released on 2014-05-07 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: Liquidity involves the degree to which an asset can be bought or sold in the market without affecting its price. The 2007 to 2009 financial crisis was characterized by a decrease in liquidity and necessitated the introduction of Basel III capital and liquidity regulation in 2010. Inside, you’ll learn how such regulations are applied on a broad crosssection of countries in order to understand and demonstrate the implications of Basel III. This book summarizes the defining features of the Basel I, II, and III Accords and their perceived shortcomings, as well as the role of the Basel Committee on Banking Supervision (BCBS) in promulgating international banking regulation. Basel III quantifies liquidity risk by using the measures liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). This book discusses approximation techniques that may be used to estimate these liquidity measures. Inside, the authors highlight the connections between liquidity creation and bank capital and provide you with the details of an investigation of the risks liquidity creation generates for banks. In addition, we consider the impact of the implementation of Basel III liquidity regulation on macroeconomic variables such as GDP, investment, inflation, consumption, income, savings, and employment.

Download or read book Basel III and Bank Lending Evidence from the United States and Europe written by Mr.Sami Ben Naceur and published by International Monetary Fund. This book was released on 2017-11-15 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using data on commercial banks in the United States and Europe, this paper analyses the impact of the new Basel III capital and liquidity regulation on bank-lending following the 2008 financial crisis. We find that U.S. banks reinforce their risk absorption capacities when expanding their credit activities. Capital ratios have significant, negative impacts on bank-retail-and-other-lending-growth for large European banks in the context of deleveraging and the “credit crunch” in Europe over the post-2008 financial crisis period. Additionally, liquidity indicators have positive but perverse effects on bank-lending-growth, which supports the need to consider heterogeneous banks’ characteristics and behaviors when implementing new regulatory policies.

Download or read book Can Basel 3 Regulatory Framework Prevent a New Financial Crisis written by Lionel Marrache and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: After the inability of Basel accords to prevent the failure of the banking system during the financial crisis of 2007, the Basel Committee had to improve these accords and agreed on a new regulatory framework for the financial system in 2010. The new accord will make the financial institutions follow an agenda of reforms until 2019. It is supposed to ensure a financial stability and allow survival during periods of financial distress with a higher quality and amount of capital. My literature review is organised in four parts according to the texts chosen. I will shaw the Basel II limits and failures before explaining the new requirements of Basel III agreements supposed to fix the previous mistakes. Then, I will, in a second part, try to find out the impacts in terms of capital, liquidity and risk management for banks as well as the new challenges that the reforms will create. The third part of my thesis will analyse how the banks can adapt to the new requirements or the possible mitigations possibilities. The last part will finally synthesize the previous parts and find out the limits of the Basel III agreements and whether they are sufficient to prevent a new banking crisis from happening.

Download or read book Status of the Basel III Capital Adequacy Accord written by Walter W. Eubanks and published by DIANE Publishing. This book was released on 2010 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: The new Basel Capital Adequacy Accord (Basel III) is an agreement among countries' central banks and bank supervisory authorities on the amount of capital banks must hold as a cushion against losses and insolvency. Basel III is of concern to Congress mainly because it could put U.S. financial institutions at a competitive disadvantage in world financial markets. This report follows the basic elements of the Basel III documents on the types of capital requirements and their phase-in schedule, which were approved by the Basel member central bank governors on September 12, 2010. The elements are the new definition of Tier 1 capital, the minimum common equity capital, the capital conservation buffer, countercyclical capital buffer, liquidity coverage ratio, global leverage ratio, and wind-down government capital injections. The report concludes with some implications drawn from its content.

Download or read book Did Basel III Miss the Point The Role of IFRS s Other Comprehensive Income During the Financial Crisis written by Kenneth Born and published by Anchor Academic Publishing. This book was released on 2017 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: The broad consensus before the recent financial crisis was that the so called fair value accounting (FVA) improves transparency contrary to the historical cost model. Since 2008, the discussion has been on the root cause of the crisis, which lessons can be gleaned from it and how making the same mistakes again can be avoided. Basel III was implemented in order to improve the regulatory environment and was the response of regulators and politicians to public pressure and suspicions raised by the bail out programmes for banks. Consequently, an until then inconceivable number of new regulations and regulatory bodies were introduced. FVA was also blamed as part of the cause of the recent financial crisis. Available-for Sales (AfS) securities represent a major component of bank balance sheet asset. Gains and losses of AfS-positions are recorded within the Other Comprehensive Income (OCI). The OCI includes items which are not recognized (IAS 1.7) in income statements but increase or decrease a bank’s equity. The items also include income and expenses from Available-for-Sale positions (AfS) in accordance with IAS 39. On October 13th, 2008, an amendment to IAS 39 was published by IASB. This amendment did authorize the reclassification of assets. This amendment clearly demonstrates the influence of FVA on the value of assets of banks that apply IFRS. The main objective of this book is to verify the influence of OCI and whether the new regulations sufficiently capture this critical factor. Regulators should ensure that unrealized profits do not result in a capital drain. One way to assure this is to make OCI subject to a prudential filter and to deduct it from regulatory capital, which was the case until CRR became effective on January 1st, 2014 (CEBS guideline 2004). Basel III is even less strict than Basel II in that regard. Article 26(1) CRR clearly states that CET1 items must be recognized only in case they are really available to the financial institution for “unrestricted and immediate use to cover risks or losses as soon as these occur”. Nevertheless, with the introduction of the CRR, the prudential filter for positions that caused the financial crisis and led to poor capitalization of banks was not strengthened but actually removed. At present, CRR does not envisage any filter for unrealized gains parked in OCI.

Download or read book New Perspectives on the Bank Firm Relationship written by Paola Ferretti and published by Springer. This book was released on 2016-11-14 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book analyses the connections between the banking industry in Europe and the companies it finances. Ferretti specifically studies how these bonds have evolved over time and questions whether now is the time for a change in the relationship’s dynamics. Chapters discuss the role of bank lending in firms’ financing during the recent financial crisis, as well as issues in credit risk management. The discussion also examines regulatory requirements impacting banks and firms (Basel III) and how they intersect with banks’ internal purposes. Moreover, the book explores how the financial crisis has impacted the relationship between banks and businesses, and seeks to identify the strengths and weaknesses inherent to it. Through this timely discussion, Ferretti looks to the future of the relationship between banks and non-financial organizations to see how they can be revitalised, adapted and reimagined in a post-crisis economy.

Download or read book Globalisation and Finance at the Crossroads written by Adrian Blundell-Wignall and published by Springer. This book was released on 2018-06-28 with total page 285 pages. Available in PDF, EPUB and Kindle. Book excerpt: Globalisation and the governance of the international financial system have arrived at the crossroads, where either a coherent level playing field for the cross-border activities of banks and multinational enterprises is settled upon, or the risk of another crisis will build up again. This book will explore the underlying problems alongside inconsistent economic and financial trends as a guide for researchers, advanced students and professionals to think about the interconnectedness of the factors involved. Readers will gain insights drawn from recent developments in economic theory and empirical research—a toolkit to help them in their future careers in economics and finance—illustrated with an analysis of the 2008 crisis and its aftermath.

Download or read book Bank Liquidity and the Global Financial Crisis written by Laura Chiaramonte and published by Springer. This book was released on 2018-07-09 with total page 213 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the lessons learned from the Global Financial Crisis of 2007–9 is that minimum capital requirements are a necessary but inadequate safeguard for the stability of an intermediary. Despite the high levels of capitalization of many banks before the crisis, they too experienced serious difficulties due to insufficient liquidity buffers. Thus, for the first time, after the GFC regulators realized that liquidity risk can jeopardize the orderly functioning of a bank and, in some cases, its survival. Previously, the risk did not receive the same attention by regulators at the international level as other types of risk including credit, market, and operational risks. The GFC promoted liquidity risk to a significant place in regulatory reform, introducing uniform international rules and best practices. The literature has studied the potential effects of the new liquidity rules on the behaviour of banks, the financial system, and the economy as a whole. This book provides a comprehensive understanding of the bank liquidity crisis that occurred during the GFC, of the liquidity regulatory reform introduced by the Basel Committee with the Basel III Accord, and its implications both at the micro and macroeconomic levels. Università Cattolica del Sacro Cuore contributed to the funding of this research project and its publication.

Download or read book Implications from regulatory changes on the Swiss banking sector written by Stefan Stotz and published by GRIN Verlag. This book was released on 2016-04-18 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 5, Prifysgol Cymru University of Wales, course: MBA International Finance, language: English, abstract: Basel III has already had a major impact on the global finance sector. In this report I have analyzed the impact on the swiss banks, in particular the system relevant banks. In response to the latest global financial crisis, a number of regulatory policies such as Anti-Money Laundering (AML) and stringent compliance were adopted over the past years but the finance sector called for an international standard, a global regulation. The planned implementation of Basel Accords by January 1, 2019 focuses on much higher capital requirements as well as increased liquidity and funding requirements at the same time. The core goal of Basel III is to make sure that government will never have to bail out banks again as they did in many cases over the past years. This objective of this thesis is to analyze and describe the Basel III framework and focus on its implications on the banking industry, with a focus on the Swiss Banking Sector. The main challenges ahead for the banking sector due to the extensive regulatory changes are to review the profitability of their business models as intensification of compliance will bring pressure on bank’s profit margins. The report will describe how financial institutions will also have to review funding strategies and also deal with the impact of increased capital and liquidity costs. Further will the technical compliance with the new rules and required key ratios be a significant challenge in itself. This thesis will present the beginning of today’s regulatory set of regulations which began in July 1988 known as the Basel I Accord and explain the different intermediate stages until the newest regulatory framework: Basel III. The Basel III Accord will be gradually implemented over a transition period from 2013 - 2018. Further to analyzing the impact of the new Accord on the financial system and Switzerland in particular, this thesis will also review the sufficiency of different key ratios that have to be achieved by the Banks in order to meet the regulators standards and will provide key findings and suggestions for improvement for the body of rules to be more efficient and meaningful. The latest official financial statements by the Banks suggest that the system-relevant banks are well on the way of not only meeting the required standards but also to find alternatives to maintain current profitability. [...]

Download or read book Banking On Basel written by Daniel Tarullo and published by Columbia University Press. This book was released on 2008-11-30 with total page 327 pages. Available in PDF, EPUB and Kindle. Book excerpt: The turmoil in financial markets that resulted from the 2007 subprime mortgage crisis in the United States indicates the need to dramatically transform regulation and supervision of financial institutions. Would these institutions have been sounder if the 2004 Revised Framework on International Convergence of Capital Measurement and Capital Standards (Basel II accord)—negotiated between 1999 and 2004—had already been fully implemented? Basel II represents a dramatic change in capital regulation of large banks in the countries represented on the Basel Committee on Banking Supervision: Its internal ratings–based approaches to capital regulation will allow large banks to use their own credit risk models to set minimum capital requirements. The Basel Committee itself implicitly acknowledged in spring 2008 that the revised framework would not have been adequate to contain the risks exposed by the subprime crisis and needed strengthening. This crisis has highlighted two more basic questions about Basel II: One, is the method of capital regulation incorporated in the revised framework fundamentally misguided? Two, even if the basic Basel II approach has promise as a paradigm for domestic regulation, is the effort at extensive international harmonization of capital rules and supervisory practice useful and appropriate? This book provides the answers. It evaluates Basel II as a bank regulatory paradigm and as an international arrangement, considers some possible alternatives, and recommends significant changes in the arrangement.

Download or read book Does Going Tough on Banks Make the Going Get Tough Bank Liquidity Regulations Capital Requirements and Sectoral Activity written by Ms.Deniz O Igan and published by International Monetary Fund. This book was released on 2020-06-19 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank liquidity and capital levels were related to differences in sectoral activity around the period of the global financial crisis. We find that industries which are more dependent on external finance, in countries where banks had higher liquidity and capital ratios, performed relatively better during the crisis, with regard to investment rates and the creation of new enterprises. This relationship, however, exists only for bank-based systems and emerging market economies. In the pre-crisis period, we find only a marginal link to bank capital. These findings survive a battery of robustness checks and provide some solid support for the tighter prudential measures introduced under Basel III.

Download or read book From Basel II to Basel III Would Investment Banking be preferred under Basel II written by Malte Vieth and published by GRIN Verlag. This book was released on 2014-03-25 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Economics - Finance, grade: 1,7, Johannes Gutenberg University Mainz, language: English, abstract: In the year 2007 the first bad signs appeared which predicted that something is happening in global financial markets. An asset-bubble in the US housing market started to bust and that event had generated fatal consequences not only for the US, but also for the rest of the world. Several major peaks characterize the recent financial crisis, also named subprime crisis, such as the country default of Iceland (though subprime crisis was not the main cause) or the nationalization of the mortgage corporations Freddie Mac and Fannie Mae by the US government. Certainly, no one forgets the queues of people waiting outside the branches of the British bank Northern Rock to withdraw their savings from the bank as a result of rumors about liquidity problems of this institution. Some of the biggest Investment Banks in the world experienced serious difficulties with reference to their liquidity situation and were acquired by other banks. JPMorgan Chase bought the traditional US Investment Bank Bear Stearns and Bank of America merged with the US Investment Bank Merrill Lynch. Clearly, one of the most important events in the course of the subprime crisis was the collapse of the US Investment Bank Lehman Brothers which happened on 15th September 2008. Especially Investment Banks were hit hard by the subprime crisis and also the Investment Banking divisions of universal banks caused many issues for the whole institution. One of the main causes of the subprime crisis was identified: the Investment Banking business. The regulatory framework with reference to the banking supervisory failed in times of financial turmoil and needed to be reformed. In particular, the capital situation and liquidity profile of many banks were not adequate compared to the risks these banks were exposed to. Risks resulting from positions in the trading book (market-to-market) and risks resulting from offbalance sheet items which were not monitored by supervisory authorities needed to be emphasized. When the crisis hit, the capital requirements on the banking book were sufficiently deep to safeguard banks. The capital requirements on the trading book, however, were nowhere strong enough to absorb the losses (Dayal, 2011, p. 17). The new regulatory framework, namely Basel III, developed by the Basel Committee on Banking Supervisions which was finalized in 2011 focused on these risks.

Download or read book The Future of Financial Regulation written by Johan A. Lybeck and published by Cambridge University Press. This book was released on 2016-02-11 with total page 837 pages. Available in PDF, EPUB and Kindle. Book excerpt: A number of changes have been made to the supervision and regulation of banks as a result of the recent financial meltdown. Some are for the better, such as the Basel III rules for increasing the quality and quantity of capital in banks, but legal changes on both sides of the Atlantic now make it much more difficult to resolve failing banks by means of taxpayer funded bail-outs and could hinder bank resolution in future financial crises. In this book, Johan A. Lybeck uses case studies from Europe and the United States to examine and grade a number of bank resolutions in the last financial crisis and establish which were successful, which failed, and why. Using in-depth analysis of recent legislation, he explains how a bank resolution can be successful, and emphasizes the need for taxpayer-funded bail-outs to create a viable banking system that will promote economic and financial stability.

Download or read book Consequences of selected Basel III regulations for real estate developers written by Laura Gerke-Teufel and published by GRIN Verlag. This book was released on 2014-07-09 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: Masterarbeit aus dem Jahr 2013 im Fachbereich BWL - Investition und Finanzierung, Munich Business School, Sprache: Deutsch, Abstract: The high leveraged American real estate investment market dominated by speculators, brought about a global financial crisis of epic proportions in 2008. The global financial recession, which followed, highlighted a gloomy rate of interdependence in the banking world. It exposed the tight interconnection of the American real estate market and the structures of the global financial market (Panagopoulos et al. 2009, 2-4). In December 2010, the Basel Committee on Banking Supervision published the report ''Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems'' which will be implemented gradually across the European Union (among others) between 2013 and 2019 and supplements the existing International Convergence of Capital Measurement Document (Basel II) which was implemented in 2008 (Basel Committee on Banking Supervision, 2013). The reformed capital and liquidity requirements for banks, Basel III, is a response to the global financial crisis and represents a substantial step forward from its predecessor regime, Basel II which already based credit costs on the degree of risk. One of the most significant outcomes of Basel III will be the enormous rise in the banking industry's capital requirements and the rise in lending as well as borrowing costs (Basel Committee on Banking Supervision, 2013). Real estate developers heavily depend on debt capital for their projects and partake usually only with a small amount of equity capital in a project. If the access to bank loans will be limited or restricted in the future, developers will have to adapt their financing model to the new market conditions and challenges posed by Basel III and take other financing alternatives into consideration in order to decrease dependence on bank loans (Drucker, 2012). Other financing alternatives might also gain attraction if senior loans become more restricted or the securities or the equity required by the bank increase so much that the return on investment of real estate developers will make investments unprofitable or they might not able to provide these securities. They might not know how to proceed and restructure their financing model adapting it to a lower amount of senior debt. The increased loan documentation due to Basel III might take so long that the developer will not be able to realize the project viably anymore due to fast changing market conditions (Drucker, 2012).