Basel II and III | Basel and capital framework compliance
We can help your business manage Basel regulations and capital requirements
Basel III is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk agreed upon by the members of the Basel Committee on Banking Supervision. The third installment of the Basel Accords was developed in response to the deficiencies in financial regulation revealed by the late-2000s’ financial crisis. Basel III strengthens bank capital requirements and introduces new regulatory requirements on bank liquidity and bank leverage. In Basel III, a more formal scenario analysis is applied.
In the United States, current regulatory capital rules have been incorporated into a harmonized, comprehensive framework and would revise the capital requirements to make them consistent with the Basel III capital and certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
We understand the importance of measuring capital adequacy, stress testing and loss reserve estimation reporting, bringing an extensive background in modeling, banking, risk management and simulation to assist in your business’s needs.
Drive the analytics that support Basel requirements and ultimately ensure your business’s compliance with our numerous data assets across different sources. We can provide a full, 360-degree view that includes consumer and commercial data from one trusted source.
Stress testing is used by regulators for measuring your bank’s viability. You can use it to your competitive advantage to look more closely at the impact of different levers in your credit risk strategies.
Understand the results of a stress test and evaluate strategic initiatives to help offset the potential impact by optimizing risk-weighted assets and capital usage.
Basel impacts all financial institutions, but the impact may differ by jurisdiction, type and size. Global systemically important banks (G-SIBs) will be subject to higher core tier 1 capital requirements.