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What Awaits Banks After the Leverage Ratio 

April 15, 2014
Mayra Rodríguez Valladares, DealBook

Mayra Rodríguez Valladares is managing principal at MRV Associates, a capital markets and financial regulatory consulting and training firm based in New York. She is also a faculty member at Financial Markets World and the New York Institute of Finance.

The stronger leverage ratio approved by United States regulators on Tuesday is an essential component to the international banking rules of Basel III, which currently allow large banks a lot of flexibility and potential for data manipulation.

Yet it is not the last buffer for the world’s systemically important banks.

There are still quite a number of Basel guidelines, which the Basel Committee on Banking Supervision is expected to finalize later this year, at which point they would then probably be introduced by American bank regulators. The combination of all of these pending rules will affect banks’ business strategies significantly and will continue to influence how they strengthen their auditing and compliance teams for years to come.

Read more: DealBook

 
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