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Basel Committee downplays impact of banking reform package 

November 25, 2015


According to the results of its interim analysis of the impact of its fundamental 'trading book' review, its proposed changes would increase overall minimum capital requirements under the Basel III regulatory regime by only 4.7%. Removing the bank with the largest value of market risk-weighted assets from the sample would reduce this still further, to only 2.3%, it said.

The analysis relates to proposals by the Basel Committee to change the way in which banks would have to categorise certain risks as part of their trading operations, which would have a knock-on impact on the amount of capital affected banks would have to hold against those risks.

The committee examined the potential impact of its proposals on 44 unnamed banks as part of the exercise. It used data from 31 December 2014 to "provide a better understanding of the capital impact and/or implementation dynamics", according to its report. Read more


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