Tuesday, 12 November 2013

Why Basel III Will Fail and Isn’t Necessary Anyway

By Patrick Barron

Last week I “attended” an online webinar about Basel III’s proposed new liquidity requirements for banks. My goal in attending the webinar was to get a general idea of how difficult it would be for banks to understand the new regulations and comply with them. Plus, I wanted to assess the likely impact Basel III would have on bank operational costs and earnings.

Let’s cut right to the chase. These regulations are extremely complicated, to my mind almost incomprehensibly so. The narrated presentation of forty-five very busy slides contained many caveats that certain provisions were unclear and/or still unresolved and were awaiting industry comments before final publication.

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