Abstract
Following the widespread financial instability of recent years, the Basel Committee on Banking Supervision has put forward reform proposals, commonly referred to as Basel III, to increase the resilience of the banking sector. The reform package is a major overhaul of the current regulatory framework, as it includes a comprehensive set of rules encompassing tighter definitions of capital, improved risk capture, a non-risk-based leverage ratio, a framework for capital conservation and countercyclical buffers, and a novel regime for liquidity risk. In addition, work on the regulatory response to the risks posed by systemically important financial institutions is under way. This issue of the International Journal of Central Banking contains papers, discussions, and commentaries that address some of the real and financial effects of Basel III. The papers were presented at the third IJCB Financial Stability Conference hosted by the Bank of England on May 26–27, 2011.
Authors
- Douglas Gale
- Rafael Repullo
- Frank Smets