Understand whether Basel III make a difference in capital costs of credit decisions.

1. Capital Costs of Credit Decisions - does Basel III
make a Difference?
Understand the Potential Impact of New Capital Rules to a Commercial Loan
Portfolio.
Presenter -
Tally Ferguson
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2. Agenda
• Basel III – does this mean me?
• Cliff Note Comparison Basel I to Basel III
• Loan specific impact
• Basel III impact – does it matter
• Existential credit risk discussion
• Existential Capital discussion
• Mixing Credit risk’s chocolate with Capital’s peanut
butter
• Basel III and tea leaves – practical implications
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3. Basel III – does this mean me?
“ Community banking organizations become subject to the
new rule on January 1, 2015”
-- Federal Reserve’s New Capital Rule, Community Bank Guide, July 2014
• Objectives
• Increase quality and quantity of capital for all banking organizations
• Establish a robust and comprehensive capital framework
• Keep large, internationally active banks well capitalized during all
eventualities
• Minimize potential burden of these changes
• Final rule issued October 11, 2013
• Technical corrections and clarifications made November 18, 2014
• Market risk changes and clarifications made December 6, 2013
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4. To see the complete presentation check the
below link:
http://www.audiosolutionz.com/banking/capital-costs-of-
credit-decisions.html