Risk weight for European Stability Mechanism. The Basel Committee announced that supervisors may allow banks to apply a 0% risk weight to claims on the European Stability Mechanism (ESM) and European Financial Stability Facility (EFSF). Claims on the ESM and EFSF will therefore also be included as Level 1 High Quality Liquid Assets in accordance with paragraph 50 (c) in “Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools.” (3/18/2014) BIS press release.
IOSCO comparison study of securities standards. The International Organization of Securities Commissions published a consultation report entitled “A Comparison and Analysis of Prudential Standards in the Securities Sector,” which undertakes a high level comparative analysis of the key prudential/capital frameworks for securities firms. The report highlights similarities, differences and gaps among the different frameworks. (3/10/2014) IOSCO press release.
Basel Committee monitoring results. The Basel Committee published the results of its Basel III monitoring exercise. The study is based on the rigorous reporting processes set up by the Committee to periodically review the implications of the Basel III standards for financial markets. (3/6/2014) BIS press release.