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Key regulations: capital, liquidity and leverage

Basel III: capital
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Capital; liquidity; leverage | Date of publication: June, 2011
Set of proposals for banking regulation reform that supplement BIS II, adding a capital buffer, leverage and liquidity requirements, and modifying the capital base as well as the calculation of minimum capital requirements.
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Basel III revision
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Credit risk; operational; CVA; leverage; floors | Date of publication: December, 2017
Revisions to the Basel III regulatory framework that will help restore credibility in the calculation of RWA by: i) enhancing the robustness and risk sensitivity of the standardised approaches for credit risk and operational risk, which will facilitate the comparability of banks' capital ratios; ii) constraining the use of internally modelled approaches; and iii) complementing the risk-weighted capital ratio with a finalised leverage ratio and a revised and robust capital floor.
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Standards on the regulatory treatment of accounting provisions for an interim period
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Credit risk; Capital; Provisions | Date of publication: March, 2017
Final standards that set out the regulatory treatment of accounting provisions for an interim period. Given the limited time until the effective date of IFRS 9, the BCBS retains the current treatment under the Basel framework that period. Further, the final standards set out the transitional arrangements that institutions may choose to implement from 1 January 2018, aiming to smooth any potential significant negative impact on regulatory capital arising from the introduction of expected credit losses (ECL) accounting.
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Minimum capital requirements for market risk
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Market risk; Capital | Date of publication: January, 2016
Final standards by the BCBS proposing a revised market risk framework, after conducting the Fundamental Review of the Trading Book. This revised market risk framework consists of the following key enhancements: i) revised boundary between the banking book (BB) and trading book (TB); ii) revised Standardised Approach (SA); and iii) revised Internal Models Approach (IMA).
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Standard on the minimum capital requirements for market risk
Scope: Global | Regulator: BCBS | Industry: Banca | Topic: Market risk; Capital | Date of publication: January, 2019
Standard on the minimum capital requirements for market risk which aims at addressing those issues that have been identified in the course of monitoring the implementation and impact of the standard published in 2016. In particular, amendments are introduced to the following aspects: i) scope of application, ii) internal models, iii) standardised approach, and iv) simplified alternative to the standardised approach.
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Interest rate risk in the banking book (IRRBB)
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Interest rate risk; Capital | Date of publication: April, 2016
Final standards which update the Pillar 2 Principles for the management and supervision of interest rate risk in the banking book (IRRBB). The BCBS also sets out a standardised framework which supervisors could mandate their banks to follow, or a bank could choose to adopt.
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Basel III. The Liquidity Coverage Ratio (LCR) and liquidity risk monitoring tools
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Liquidity | Date of publication: January, 2013
Introduces significant changes to the short-term liquidity coverage ratio (LCR), to make requirements less stringent.
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Basel III. The Net Stable Funding Ration (NSFR)
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Interest rate risk; Capital | Date of publication: October, 2014
The BCBS has reinforced its liquidity framework through the development of two minimum standards for funding liquidity. The aim of the NSFR is to reduce funding risk over the longer term. For this, banks are required to fund their activities with stable sources of funding.
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CRD IV/CRR
Scope: EU | Regulator: EP and Council | Industry: Banking | Topic: Capital; Corporate governance | Date of publication: June, 2013
CRD IV/CRR transposes Basel III to European law. This text strengthens bank capital requirements, introduces a mandatory capital conservation buffer and a discretionary countercyclical buffer, and foresees a framework for new regulatory requirements on liquidity and leverage, as well as additional capital requirements for systemically important institutions.
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Solvency II
Scope: EU | Regulator: EP and Council | Industry: Insurance | Topic: Insurance | Date of publication: November, 2009
Directive that governs and harmonizes insurance regulations in Europe. It deals mainly with the amount of capital that EU insurance companies must hold to reduce the risk of insolvency.
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Reform package of the financial system
Scope: EU | Regulator: European Commission | Industry: Banking | Topic: Capital; liquidity; leverage; resolution | Date of publication: November, 2016
Reform package of the financial system, whereby the European Commission is proposing to amend the Capital Requirement Directive (CRD IV), the Capital Requirement Regulation (CRR), the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism Regulation (SRMR), and the Regulation on EMIR. Some of the key elements of this reform are the leverage ratio (LR), the total loss absorbing capacity (TLAC) requirement, the net stable funding ratio (NSFR) and the capital requirements for market risk derived from the Fundamental Review of the Trading Book (FRTB).
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Changes to the IRB method
Scope: EU | Regulator: EBA | Industry: Banking | Topic: Credit risk; Capital | Date of publication: March, 2015
Deals with key actions that need to be implemented to improve the IRB approach framework.
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RTS on assessment methodology for IRB approach
Scope: EU | Regulator: EBA | Industry: Banking | Topic: Credit risk | Date of publication: July, 2016
RTS on the assessment methodology for IRB, which pretend to harmonise its implementation across all Member States in the EU. In particular, it rectifies the issues identified in this regard in the EBA Report on the comparability of the IRB models and provides enhanced clarity on various aspects of the IRB Approach application.
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Final Guidelines on PD and LGD estimation and the treatment of defaulted exposures
Scope: EU | Regulator: EBA | Industry: Banking | Topic: Credit risk | Date of publication: November, 2017
Guidelines on estimation of the IRB risk parameters (PD and LGD) and on the treatment of defaulted exposures, which are focused on the definitions and modelling techniques used in the estimation of risk parameters for both non-defaulted (PD and LGD) and defaulted exposures (best estimate of expected loss (ELbe) and LGD-in defaulted).
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Criteria for allowing the use of AMA methods
Scope: EU | Regulator: EBA | Industry: Banking | Topic: Operational risk; Capital | Date of publication: June, 2015
RTS specifying the qualitative and quantitative requirements on which Competent Authorities should base their decisions as to whether to allow banks to use advanced methods (AMA) for the calculation of capital for operational risk.
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RTS on the assessment methodology of IMA for market risk
Scope: EU | Regulator: EBA | Industry: Banking | Topic: Market risk | Date of publication: November, 2016
RTS that specify, among other aspects, the methodology that competent authorities shall apply to assess compliance of an institution with the requirements to use an Internal Model Approach (IMA) for market risk.
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Delegated Regulation (EU) 2015/61 to supplement Regulation (EU) No 575/2013 with regard to liquidity coverage requirement (LCR)
Scope: EU | Regulator: European Commission | Industry: Banking | Topic: Liquidity | Publication date; January, 2015
Delegated Regulation  that lays down rules to specify in detail the liquidity coverage requirement provided for in Article 412 of the CRR
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Delegated Regulation (EU) 2015/62 amending Regulation (EU) No 575/2013 with regard to the leverage ratio (LR)
Scope: EU | Regulator: European Commission | Industry: Banking | Topic: Leverage | Date of publication: January, 2015
Delegated Regulation that introduces changes to the leverage ratio framework according to the provisions set out in the CRR.
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