A number of important documents were issued in October,
including on Basel III implementation progress internationally, on
banking structural reform in the EU and the UK, on how the
Prudential Regulation Authority (PRA) and the Financial Conduct
Authority (FCA) will approach supervision, and the final instalment
of the Mortgage Market Review.
As usual this note is produced for information only, on a best
efforts basis, and does not constitute advice of any kind.
Capital (including stress testing)
The Basel Committee on Banking Supervision
(BCBS) published a progress report on Basel III
implementation: only eight of the 27 member countries of the BCBS
have issued final Basel III related regulations. The report also
noted that the EU's Capital Requirements Regulation (CRR) and
the revised Capital Requirements Directive (CRD4) are
"materially non-compliant" against the Basel III
framework in two areas: definition of capital; and the internal
ratings based (IRB)
