The rush to uncertainty Peter Green and Jeremy Jennings-Mares

摘要

On December 17,2009, the Basel Committee on Banking Supervision (BCBS) published its much-anticipated proposals for strengthening the resilience of the banking sector and the international framework for liquidity risk management. The proposals are wide ranging and will have a significant impact on banks and other regulated financial institutions.rnThe BCBS consultation period ends on April 26, with an intention for concrete changes to be announced by the end of 2010. The proposals have been welcomed in many quarters as an important step in ensuring regulatory capital better reflects the risks undertaken by individual banks and that they are in a better position to withstand future financial crises. Concerns have been raised, however, that a number of the changes are being pushed through in an accelerated timeframe under political pressure from the G-20 and, in cases such as the proposed liquidity framework, are not consistent with other developments already in progress.