Basel III is a global regulatory framework that aims to strengthen bank capital requirements and introduces new regulatory requirements on bank liquidity and leverage. The document outlines the key elements of Basel III including the three pillars of capital adequacy, supervisory review, and market discipline. It discusses the challenges Indian banks may face in implementing the new capital, leverage, and liquidity requirements and how this may impact their profitability. The higher capital requirements under Basel III will be difficult for Indian banks, especially public sector banks, to meet and may require raising over 1.5 trillion rupees in additional capital.
This presentation is the one stop point to learn about Basel Norms in the Banking
This is the most comprehensive presentation on Risk Management in Banks and Basel Norms. It presents in details the evolution of Basel Norms right form Pre Basel area till implementation of Basel III in 2019 along with factors and reason for shifting of Basel I to II and finally to III.
Links to Video's in the presentation
Risk Management in Banks
https://www.youtube.com/watch?v=fZ5_V4RW5pE
Tier 1 Capital
http://www.investopedia.com/terms/t/tier1capital.asp
Tier 2 Capital
http://www.investopedia.com/terms/t/tier2capital.asp
Basel I
http://www.investopedia.com/terms/b/basel_i.asp
Capital Adequacy Ratio
http://www.investopedia.com/terms/c/capitaladequacyratio.asp
Basel II
http://www.investopedia.com/video/play/what-basel-ii/?header_alt=c
Basel III
http://www.investopedia.com/terms/b/basell-iii.asp
RBI Governor - Raghuram G Rajan on the importance if Basel III regulations
https://youtu.be/EN27ZRe_28A
This presentation is the one stop point to learn about Basel Norms in the Banking
This is the most comprehensive presentation on Risk Management in Banks and Basel Norms. It presents in details the evolution of Basel Norms right form Pre Basel area till implementation of Basel III in 2019 along with factors and reason for shifting of Basel I to II and finally to III.
Links to Video's in the presentation
Risk Management in Banks
https://www.youtube.com/watch?v=fZ5_V4RW5pE
Tier 1 Capital
http://www.investopedia.com/terms/t/tier1capital.asp
Tier 2 Capital
http://www.investopedia.com/terms/t/tier2capital.asp
Basel I
http://www.investopedia.com/terms/b/basel_i.asp
Capital Adequacy Ratio
http://www.investopedia.com/terms/c/capitaladequacyratio.asp
Basel II
http://www.investopedia.com/video/play/what-basel-ii/?header_alt=c
Basel III
http://www.investopedia.com/terms/b/basell-iii.asp
RBI Governor - Raghuram G Rajan on the importance if Basel III regulations
https://youtu.be/EN27ZRe_28A
A set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of minimizing credit risk. Banks that operate internationally are required to maintain a minimum amount (8%) of capital based on a percent of risk-weighted assets.
Operational Risk Management Under Basel II & Basel IIIEneni Oduwole
In this introductory presentation on the subject, salient features that changed in approaches adopted for Operational Risk Management under Basel I and Basel I were highlighted.
The impact of Basel III, also known as The Third Basel Accord, will vary by geography -- from potentially slowing down economies in emerging nations, to protecting the European Union from financial collapse, to increasing capital adequacy and improving risk management. Given the framework and timeline for implementing Basel III, the burden falls on national regulators to translate the international guidelines into national policies that suit and stabilize their economic environment and support economic growth.
A set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of minimizing credit risk. Banks that operate internationally are required to maintain a minimum amount (8%) of capital based on a percent of risk-weighted assets.
Operational Risk Management Under Basel II & Basel IIIEneni Oduwole
In this introductory presentation on the subject, salient features that changed in approaches adopted for Operational Risk Management under Basel I and Basel I were highlighted.
The impact of Basel III, also known as The Third Basel Accord, will vary by geography -- from potentially slowing down economies in emerging nations, to protecting the European Union from financial collapse, to increasing capital adequacy and improving risk management. Given the framework and timeline for implementing Basel III, the burden falls on national regulators to translate the international guidelines into national policies that suit and stabilize their economic environment and support economic growth.
“Basel III is more about improving the risk management systems in the Banks than just Improved Quality and enhanced Quantity of capital”. Please discuss the challenges to the Indian Banks by March,2017
Changes to Basel Regulation Post 2008 CrisisIshan Jain
Subprime crisis
Basel Committee objectives and history
Pillars of Basel 2 and Basel 3
Basel 3 Capital Requirements
capital Rations
Capital Buffers
Leverage Ratios
Global Liquidity Standards
macroeconomic factors
Value at Risk
Expected Shortfall
Basel iii is the cure worse than the disease?Sami Uddin
Global Banking Regulation Basel III, its economic impact on Global banking and financial industry. Reservations of Global banking and financial sector are discussed.
Basel III Is Here - What are the implications for your business? Infosys
This article focuses on the key requirements of the Basel III proposals. It highlights key issues uncovered during the financial crisis, delineates measures introduced to prevent the repeat of the issues, and outlines the impact on the financial industry and larger economy on the whole. The paper then takes a deep-dive into the impact of the new regulations on data and technology systems and the challenges firms face in re-engineering their data and IT systems. Finally, it offers a solution to these challenges.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
2. Overview…
What is the Basel III framework relating to....
Definitions of the three pillars and relationship among the
three
Significant methods of measurement of each one of them
Challenges in implementation of these norms
Indian scenario
3. What is "Basel III"
A global regulatory standard on
bank capital adequacy
stress testing and
market liquidity risk
With a set of reform measures to
improve
Regulation
supervision and
risk management
5. Reducing profitability of small banks and threat of
takeover
Lack of comprehensive approach to address risks
Self-regulation in area of asset securitization
Lack of safety
Inability to strengthen the stability of financial
system
Failure to achieve large capital reductions
6. Aim
To minimize the probability of recurrence of crises
to greater extent
To improve the banking sector's ability to absorb
shocks arising from financial and economic
stress.
To improve risk management and governance
To strengthen banks' transparency and
disclosures.
7. Target
Bank-level, or micro prudential, regulation, which
will help raise the resilience of individual banking
institutions to periods of stress.
Macro prudential, system wide risks that can build
up across the banking sector as well as the
procyclical amplification of these risks over time.
8.
9. Micro- prudential elements
To minimize the risk contained with individual
institutions
The elements are:
Definition of capital
Enhancing risk coverage of capital
leverage ratio
International liquidity framework
10. Macro- prudential elements
To take care of the issues relating to the systemic
risk
The elements are:
Leverage ratio
Capital conservation buffer
Countercyclical capital buffer
Addressing the procyclicality of provisioning
requirements
13. Pillar 1- Minimum Capital
Requirements
• calculate required capital
• Required capital based on
Market risk
Credit risk
Operational risk
• Used to monitor funding concentration
14. Pillar 2- Supervisory Review
Process
Bank should have strong internal process
Adequacy of capital based on risk evaluation
15. Pillar 3 – Enhanced Disclosure
Provide market discipline
Intends to provide information about banks
exposure to risk
16.
17. The relationship among the three
Second pillar – supervisory review process to
ensure the first pillar
- intended to ensure that the banks have
adequate capital
Third pillar – compliments first and second pillar
- a discipline followed by the bank such as
disclosing capital structure, tier-i and tier-ii capital
and approaches to assess the capital adequacy
i.e. assessment of the first pillar.
Model of commercial banks interpret first pillar as
a closure threshold rather than bank’s asset
allocation
19. The pillar is divided in three types of risk for which
capital should be held.
Credit Risk
Operational risk
Market risk
20. Credit Risk…
Credit risk is the risk that those who owe you
money will not pay you back.
Historically credit risk is the larger risk banks run.
BIS II proposes three approaches by which a bank
may calculate its required capital for credit risk.
Standardized approach
Internal rating based (IRB) advanced
Internal rating based (IRB) foundation
21. Operational Risk…
Operational risk is defined as the risk of loss
resulting from inadequate or failed internal
processes, people and systems or from external
events.
Comparable to credit risk, BIS II proposes three
methods for measuring operational risk.
Basic indicator approach
Standardized approach
Advanced measurement approach (AMA)
22. Market Risk…
Market risk is the risk of losses due to changes in
the market price of an asset.
Market risk will only have to be calculated for
assets in the trading book.
Foreign exchange rate risk and commodities risk
are part of the market risk.
Two methods may be used:
Standardized measurement method
Internal models approach
24. • The new and stricter regulations of the basel3
like higher capital requirements, the new liquidity
standard, the increased risk coverage, the new
leverage ratio or a combination of the different
requirements will be difficult to adopt by the banks
• Banks have to take a number of actions to meet
the various new regulatory ratios, restoring of data
,
• Banks must be able to calculate and report the
new ratios. Which requires the huge
implementation effort.
26. Functional challenges
•Developing specifications for the new regulatory
requirements, such as the mapping of positions (assets
and liabilities) to the new liquidity and funding
categories in the LCR and NSFR calculations.
•the specification of the new requirements for trading
book positions and within the CCR framework (e.g.
CVA) as well as adjustments of the limit systems with
regard to the new capital and liquidity ratios.
•Crucial is the integration of new regulatory
requirements into existing capital and risk management
as some measures to improve new ratios (e.g. liquidity
ratios) might have a negative effect on existing figures.
27. Technical challenges
•The technical challenges includes the availability of
data, data completeness, and data quality and data
consistency to calculate the new ratios.
• The financial reporting system with regard to the new
ratios and the creation of effective interfaces with the
existing risk management systems.
28. Operational challenges
• The operational challenges includes stricter capital
definition lowers banks’ available capital. At the same
time the risk weighted assets (RWA) for
securitizations, trading book positions and certain
counterparty credit risk exposures are significantly
increased.
• The stricter capital requirements, the introduction of
the LCR and NSFR will force banks to rethink their
liquidity position, and potentially require banks to
increase their stock of high-quality liquid assets and to
use more stable sources of funding.
29. •Basel III also introduces a non-risk based
leverage ratio of 3 percent. Group1 banks are
failed in maintaining the this leverage ratio
•The banks will experience increased pressure on
their Return on Equity (RoE) due to increased
capital and liquidity costs, which along with
increased RWAs will put pressure on margins
across all segments
31. Capital…
Indian banks need to raise Rs 1.5 lakh crore to
Rs 1.75 lakh crore as capital to meet the BASEL-
III requirements.
Can PSU banks mobilize this sort of capital?
- Probably NO, The alternate to the
government is either to reduce shareholding
below 50% or slowdown PSU growth
Can private banks raise this sort of money?
- They probably can, because Rs 500 billion
was raised in last 5 years
32. Problems for PSUs
Capital adequacy ratio
- has been stipulated at 9%, unchanged from
what the regulator requires in India
currently, banks here will need to raise more
money than under the current Basel II norms
because several capital instruments cannot be
included under the new definition.
Ex: Perpetual Bond
Maintaining an 8% tier I capital ratio
More additions to non-performing assets
Unamortized expenditure on pension liabilities
33. The Indian economy is also expected to grow at
an annual growth rate of 8-9% for next 10 years
or so. This would undoubtedly necessitate a
considerable growth in bank capital.
34. Issues relating to SLR and LCR
….
India, banks are statutorily required to hold
minimum reserves of high-quality liquid assets at
24% of net demand and time liabilities.
The proportion of liquid assets in total assets of
banks will increase substantially, if the SLR
reserves are not reckoned towards the LCR
(Liquidity coverage ratio) and banks are to meet
the entire LCR with additional liquid
assets, thereby lowering their income
significantly.
RBI is examining to what extent the SLR
requirements could be reckoned towards the
liquidity requirement under Basel III.
35. Profitability ….
Retail banks will be affected least, though
institutions with very low capital ratios may find
themselves under significant pressure.
Corporate banks will be affected primarily in
specialized lending and trade finance.
Investment banks will find several core
businesses profoundly affected, particularly
trading and securitization businesses.
Balance sheet restructuring and business-model
adjustments could potentially mitigate up to 40
percent of Basel III’s RoE impact, on an average.
Government banks may have to sacrifice growth
36. Cont’d…
The impact of credit requirements on the
profitability of banks would depend upon sensitivity
of lending rates to capital structure of banks and
sensitivity of the credit growth to the lending rates.
When banks with low core Tier I shore up their
capital to around 9% required, their return on
equity (RoE) could drop by 1-4%.
Basel III will force banks to plough back a larger
chunk of their profit into the balance sheet.
Banks might have to rationalize dividend policies
so that more profit could be retained and used as
capital, indicating a lower dividend for the
government.
37. Benefits of Implementation…
Demonstrate that the banking system is
recovering well from the global financial crisis of
2008 and has been developing the resilience to
future shocks.
Contribute to a bank’s competitiveness by
delivering better management insight into the
business, allowing it to take advantage of future
opportunities.
Strengthen the financial system of both
developing and developed countries by
addressing the weaknesses in the measurement
of risk under Basel II framework revealed during
38. Cont’d…
Delivers a much safer financial system with
reduced probability of banking crises at affordable
costs. The impact of costs is minimized through
long phase-in.
It is expected that as the proportion of equity in
the capital structure of banks rises, it would
reduce the incremental costs of raising further
equity as well as non-common equity capital.
39. The Reserve Bank’s approach has been to
adopt Basel III capital and liquidity guidelines
with more conservatism and at a quicker
pace. The impact of these rules is not going to
be onerous and there will be considerable
advantage in adopting Basel III by our banks.