The Basel committee has cut its requirement for banks holding capital against clearing houses
Rules on banks holding of capital will be relaxed following
a ruling on their exposure to central counterparties (CCPs) by
the Basel Committee on Banking Regulation, writes Joe
The Basel Committee ruled on Thursday banks must set aside a
minimum risk weight of 20% in order to cover their trade
exposure to a clearing house in respect to over-the-counter and
listed derivatives transactions.
The new rules on capital will come into effect on January 1,
2017, and will result in banks holding a fraction of the 1,250%
weighting requirement set out under the interim rules
established in July 2012.
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