Basel Committee considers FSB haircut proposal
05 November 2015 Basel
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The Basel Committee on Banking Supervision is now receiving industry comment on the Financial Stability Board’s (FSB) policy proposal on haircut floors for non-centrally cleared securities financing transactions (SFT).
The committee is in the process of deciding whether to adopt the proposal into the Basel III framework.
The FSB's policy
, first published in October 2014, aimed to create incentives for banks to set their collateral haircuts above the floors rather than hold more capital, according to the Bank for International Settlement.
The deadline for industry comment is 5 January 2016 and can be submitted via the Bank for International Settlement’s website or posted to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland.
All comments will be published on the website of the Bank for International Settlements unless confidentiality is requested.
The committee is in the process of deciding whether to adopt the proposal into the Basel III framework.
The FSB's policy
, first published in October 2014, aimed to create incentives for banks to set their collateral haircuts above the floors rather than hold more capital, according to the Bank for International Settlement.
The deadline for industry comment is 5 January 2016 and can be submitted via the Bank for International Settlement’s website or posted to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland.
All comments will be published on the website of the Bank for International Settlements unless confidentiality is requested.
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