This week's member poll focuses on one of the biggest regulatory policy controversies in financial services is the proposed capital adequacy legislation, known as "Basel III Endgame". The proposed legislation would require US banks with $100B or more in assets to increase their capital holdings by 16%.
Do you agree with this proposed legislation? Vote now in the poll on the community homepage.
More detail from the Knowledge at Wharton blog:
Basel III Endgame is the final round of capital adequacy proposals from the Bank for International Settlements in Switzerland, which is owned by member central banks and acts as their banker. The latest rules are part of a series aimed at keeping the banking industry safer after the 2008 Great Financial Crisis, and the March 2023 regional banking crisis set off by the collapse of Silicon Valley Bank (SVB) and First Republic Bank.
The proposed rules will require large U.S. banks, or those with $100 billion or more in total assets, to increase their capital by an aggregate 16%, varying across banks based on their activities and risk profiles. "Most banks currently would have enough capital to meet the proposed requirements," the Federal Reserve said when it unveiled the proposals last July. The new rules will also standardize the capital framework related to credit risk, market risk, operational risk, and financial derivative risk. Banks would have a window between July 2025 and July 2028 to comply with the new framework.
#financial-services, #Regulatory, #Governance,RiskandCompliance
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Financial Services Cloud Community Team
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