Basel III content

The Foreign Exchange Commission expert has made the following arrangements for the main content of Basel III.

(1) Requirements for raising the capital adequacy ratio

Basel III has higher minimum requirements for core level-1 Capital Adequacy Ratio and level-1 Capital Adequacy Ratio, introducing capital retention capital to improve the bank's ability to absorb losses during the recession, establish an anti-cyclical excess capital range linked to the rapid growth of credit, and impose additional capital requirements on large banks to reduce the moral hazard brought about by "large but not inverted.

(2) strict capital deduction restrictions

The unrealized income from minority equity, goodwill, Deferred tax assets, non-consolidated investment for ordinary shares of Financial Institutions, debt instruments and other investment assets, the difference between the amount of reserves and the expected loss, the requirements for fixed income pension fund assets and liabilities to be included in capital have changed.

(3) expanding the coverage of risky assets

Increase the capital requirements of "re-asset securitization risk exposure", increase the risk value under pressure, increase the capital requirements of the transaction business, and increase the OTC derivatives trading (OTC derivatives) and the capital requirements of the credit risk (CR) of the counterparty of the securities financing business (sfts.

(4) Introduce leverage ratio

In order to make up for the shortage that the requirements of capital adequacy ratio cannot reflect the expansion of the total assets inside and outside the table, and reduce the loopholes caused by the calculation of capital requirements after the conversion of the weighted coefficient of assets, the leverage ratio was introduced, and gradually integrate it into the first pillar.

(5) strengthen liquidity management and reduce liquidity risks of the banking system

Introduce liquidity regulatory indicators, including liquidity coverage and net stable asset ratio. At the same time, the Basel Committee has proposed other auxiliary monitoring tools, including contract term mismatch, financing concentration, available assets without monetization obstacles, and market-related monitoring tools.