Basel III is a set of international standards developed by the Basel Committee on Banking Supervision (BCBS) who produced a framework of measures to strengthen the supervision and risk management of banks. Basel III will impact banks engaged in securities financing activity as in most instances they will now need to allocate more capital to support these activities. Specific impacts on the securities financing industry can vary depending on jurisdiction.
Our publication entitled Prudential Banking Rules: Explanatory Note, will provide a high-level overview of the framework and its impact to the securities financing market, including possible ways to address the upcoming challenges.
Download the paper today.
To find out more on the topic, we suggest reading Prudential Banking Rules: Basel III Endgame & the Buy Side, another paper in the series exploring the Basel III Endgame from the perspective of implementation and unintended consequences, focusing on the impacts for high-quality funds when transacting with banks and potential ways in which they can work with their sell side counterparts to address the upcoming challenges.