Basel Iii
Basel III:
Issues and implications kpmg.com
Contents
1.
The background to a discussion on Basel III
2
2.
What are the key outcomes?
3
3.
A summary of qualitative impacts of the proposals
4
4.
Quantitative impacts of the proposals
5
5.
Basel III objectives and time lines
7
6.
Summary of the major Basel III recommendations and implications
9
7.
Remaining questions
12
8.
Actions to consider
13
9.
What does the transformation roadmap look like?
14
10. How KPMG can help
15
11. Conclusion
16
© 2011 KPMG LLP a Delaware limited liability partnership and the U.S. member firm of the KPMG network
,
of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 23815NSS
Basel III: Issues and implications | 1
Preface
In the aftermath of the financial crisis of 2008–2009, the Basel
Committee of Banking Supervision (BCBS) embarked on a program of substantially revising its existing capital adequacy guidelines. The resultant capital adequacy framework is termed
‘Basel III,’ and the G20 endorsed the new Basel III capital and liquidity requirements at their November 2010 Summit in Seoul.
There are many areas of detail needing further development, and worldwide debate and lobbying will inevitably continue—most notably in relation to the whole issue of systemically important financial institutions (SIFIs). The core principles, however, are set, and complying with the Basel III framework is inevitable.
With the core framework being adopted by the national authorities, the focus of attention is now shifting towards implementation—determining business impact and planning for compliance. There are strong indications that even though the framework in
Issues and implications kpmg.com
Contents
1.
The background to a discussion on Basel III
2
2.
What are the key outcomes?
3
3.
A summary of qualitative impacts of the proposals
4
4.
Quantitative impacts of the proposals
5
5.
Basel III objectives and time lines
7
6.
Summary of the major Basel III recommendations and implications
9
7.
Remaining questions
12
8.
Actions to consider
13
9.
What does the transformation roadmap look like?
14
10. How KPMG can help
15
11. Conclusion
16
© 2011 KPMG LLP a Delaware limited liability partnership and the U.S. member firm of the KPMG network
,
of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 23815NSS
Basel III: Issues and implications | 1
Preface
In the aftermath of the financial crisis of 2008–2009, the Basel
Committee of Banking Supervision (BCBS) embarked on a program of substantially revising its existing capital adequacy guidelines. The resultant capital adequacy framework is termed
‘Basel III,’ and the G20 endorsed the new Basel III capital and liquidity requirements at their November 2010 Summit in Seoul.
There are many areas of detail needing further development, and worldwide debate and lobbying will inevitably continue—most notably in relation to the whole issue of systemically important financial institutions (SIFIs). The core principles, however, are set, and complying with the Basel III framework is inevitable.
With the core framework being adopted by the national authorities, the focus of attention is now shifting towards implementation—determining business impact and planning for compliance. There are strong indications that even though the framework in