Introduction of the leverage ratio, Macroprudential system: introduction of reserve capital - International finance

Introduction of the leverage ratio

Basel-3 introduces a stable (risk-free) leverage ratio, so that it serves as a reinforcement of the risk-based capital requirement. The use of this additional measure will help to restrain the accumulation of excessive "tensions" in system. This will also serve as additional protection against attempts to "play" on the requirements for risk and will help to investigate the possible risk.

Liquidity: the introduction of world standards. Strict capital requirements are necessary for the stability of the banking sector, but they were not sufficient earlier. That is why a strong liquidity base, strengthened by reliable standards control, is very important. Basel-3 introduces two internationally agreed benchmarking standards - the liquidity coverage ratio (LCR) and the final stable funding ratio ( NSFR ). Their goal is to increase banks' liquidity in risk management and risk profile. LCR is designed to make banks more resilient to short-term disruptions in access to financing, and NSFR examines the long-term structural discrepancies in liquidity in bank balances. The new international liquidity system includes a common set of monitoring indicators to assist managers in identifying and analyzing liquidity risk, both at the bank level and at the system-wide level. These indicators should be considered as the minimum information that managers need to use in monitoring liquidity risk profiles.

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Macroprudential system: introduction of reserve capital

The macro-prudential element of the Basel-3 system is a requirement that banks create reserves at an opportune time, in particular a capital preservation reserve and countercyclical reserve, which can be used in times of stress. This approach helps to mitigate cyclicality both in the banking sector and generally in the international financial system. It is about reserves in addition to the minimum capital requirements. The countercyclical reserve, which will be maintained at the level of 0-2.5% of ordinary shares or other fully covering expenses, is aimed at a broader macroprudential goal of protecting the banking sector during periods of excessive aggregate credit growth. Such periods were often associated with the accumulation of system-wide risks. In December 2010, the BCBN issued the "Guide" for national authorities managing counter-cyclical capital reserves in addition to the requirements set out in the text of the Basel-3 rules. To provide control & quot; Guidance & quot; should help banks themselves to provide reserves in those jurisdictions in which credit risks arise.

System-forming institutions. Earlier we already mentioned the system-forming banks and companies: they are very large financial and other banks, companies, funds, whose bankruptcy can undoubtedly have a significant impact on the entire financial and economic system countries and give a negative signal to the world system. In times of crisis, there is evidently an excessive correlation between systemically important banks that convey shocks to the financial system and the economy as a whole. To solve this problem, the Basel Committee and the SPS are developing a whole range of measures based on a systematic approach to systemically important financial institutions. It includes combinations of excess capital, conditional capital and debt on bail. As part of this approach, the Committee developed a proposal for a preliminary methodology for assessing the systemic significance of financial institutions at the international level. The basis for the study of system-forming institutions was to be completed during 2011 (but it was not introduced in 2012) •

From our point of view, in this issue a radical approach should be applied, namely the separation of "system banks" to small ones, as well as TNCs. Such an approach, we note, is recommended by international experts of the United Nations under the leadership of J. Stiglitz. The problems of banks that are said to be too large for bankruptcy or too large to terminate their activities are a reflection of inadequate antimonopoly legislation and/inefficient sanctions.

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