This report from Accuity
explains how Basel III will impact the financial world. Built on the pillars of Basel II, the goal for Basel III is to improve banks’ loss absorption capabilities with more capital, more liquidity and lower risk.
Although there won’t be a full implementation of Basel III until 2019, we can already see its impact on profitability. However, getting it right is definitely preferable to another economic meltdown. Banks in Taiwan, Malaysia and Hong Kong are already well on their way to meeting the requirements.
Key findings to move forward:
- Banks must focus on better data management
- Business models should be re-examined in accordance with new risk appetites
- Banks must develop capital and liquidity strategies now
- Focus on maximizing risk, capital and liquidity management process enhancements
- Keep up-to-date with the latest regulatory developments