Basel: Basel III will represent major improvement 27 April 2018Miami Reporter: Jenna Lomax
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The revised market risk framework drawn up by the Basel Committee on Banking Supervision (BCBS) for Basel III will represent a major improvement to the pre-crisis regulatory framework when it is finally completed and implemented, according to the authority.
The comments were made in a keynote speech by William Coen, secretary general of the BCBS at the 33rd annual meeting of International Swaps and Derivatives Association (ISDA) in Miami, Florida.
Coen discussed the set of the new framework firmly in the context of the quarter of a century that it has taken to develop, in particular the past decade since the global financial crisis.
He said: “The main elements of the revised framework finalised in December 2016 are in a stable shape, and the committee is focused on finalising the few remaining outstanding issues in a timely manner this year.”
He further added that an important consideration for the committee is whether the framework adequately balances simplicity, comparability and risk sensitivity. He asked if the committee will need to consider whether simpler and more robust approaches should be included in the revised market risk framework.
He noted: “This includes the 1 January 2022 implementation date of the market risk framework, as reaffirmed last month by the G20 Finance Ministers and Central Bank Governors. So the committee will increasingly be focused on meeting this expectation.”
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