Basel issued paper that conceded one point to the banks but refused another and pushed ahead with a third they will not like
The announcement on Wednesday that the
Basel Committee on Banking Supervision had opened a
consultation on its controversial leverage ratio may have
looked promising to the world’s top investment
But any optimism would have quickly
evaporated as the derivatives clearing firms studied the
consultative document and realised the plan did not go as far
as they might have hoped.
The consultative document included various
proposals some of which were welcome while others may prove
In the former camp, banks like the fact
that Basel has given in to their requests for a change to the
methodology used to calculate the leverage ratio, to the
standardised approach for measuring counterparty credit risk
exposures (SA-CCR) from the incumbent Current Exposure Model
Basel said in a statement on Wednesday:
"The Committee proposes to implement a modified version of the
SA-CCR with respect to not recognising collateral to reduce the
leverage ratio exposure measure."
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