Risk-Based Capital Requirements: Chapman and Cutler LLP

Regulatory Updates

Proposed Revisions to Basel Leverage Ratio Framework
April 6, 2016
Federal Reserve Issues Guidance Regarding the Use of the Simplified Supervisory Formula Approach in Determining Capital Risk Weights for Securitization Exposures for Advanced Approaches Banks
May 20, 2015
European Commission Project to Expand the European Capital Markets Union, Including the Development of a Framework for High-Quality Securitizations
February 19, 2015
Basel Committee Finalizes Revisions to Securitization Framework
December 11, 2014
Basel Committee & IOSCO Propose Criteria for Simple, Transparent, and Comparable Securitizations
December 11, 2014
Federal Reserve Board Proposes Risk-Based Capital Surcharges
December 10, 2014

In 2010, the Basel Committee on Banking Supervision (BCBS) published Basel III, a comprehensive reform package which is designed to improve the quality and quantity of regulatory capital and to build additional capacity into the banking system to absorb losses in times of future market and economic stress. Basel III introduces or enhances a number of capital standards, including a stricter definition of regulatory capital, a minimum tier 1 common equity ratio, the addition of a regulatory capital buffer, a leverage ratio, and a disclosure requirement for regulatory capital instruments.

In July 2013, the U.S. banking agencies issued the Final U.S. Basel III Rule to comprehensively revise the regulatory capital framework for the U.S. banking sector. The Final U.S. Basel III Rule implements many aspects of the BCBS Basel III framework but it also incorporates a number of changes required by the Dodd-Frank Act.