Stop worrying about the capital of Canadian banks — it’s all taken care of.
That essentially was the gist of an address delivered by Mark Zelmer, assistant superintendent at the Office of the Superintendent of Financial Institutions, to an industry conference in Toronto on Tuesday.
OTTAWA (Reuters) - Canada will press for timely implementation of the Basel III rules on bank capital at a November 4-5 meeting of finance ministers from the Group of 20 nations, a senior finance ministry official said on Thursday. The official said it was imperative the rules on tighter global capital and liquidity be adopted according to the timeline that has already been agreed. The Basel III rules are supposed to start coming into force worldwide at the start of 2013, but late agreement on many details means many banks are unprepared. ...
ETF Database submits: Now that the financial crisis appears to finally be subsiding, many regulators and economists have shifted their focus away from containment and towards prevention, seeking to ensure that a similar meltdown does not devastate markets again.
ByTom Dorsey:On February 21, 2014 The Federal Reserve Board has announced that Citigroup Inc. (NYSE: C) has been approved to exit parallel Basel III reporting for U.S. regulatory capital purposes and transition from the general risk-based capital rules (Basel I) to Basel III "advanced approaches," effective for the second quarter of 2014.
Ian Wyatt submits: Regulators and officials from 27 countries will meet in Basel, Switzerland to create a new series of rules they hope will avert future bank meltdowns. The basic issue is how much Tier 1 capital (cash and assets) banks need to have to provide a cushion against bad loans. The first step will be re-defining "cash and assets."
Ian Wyatt submits: On Friday, I wrote that the new banking capitalization rules coming out of the weekend meetings in Basel, Switzerland would be a non-event. For U.S. banks, that's pretty much true. After all, U.S. banks were required to raise capital after the Treasury Department's "stress tests".
Alicia Damley submits:Recognizing the pro-cyclicality of BIS II rules, the Basel Committee identified counter-cyclical provisions as one of the key changes in the proposed BIS III standards. At the end of December 2010, global regulators from 27 countries agreed on implementing counter-cyclical provisions through increases in the minimum Tier 1 capital ratio by up to 2.5% (from 7% to 9.5%).