This note covers two pieces of reform:
o Basel III – Basel Committee’s December 2009 reforms aimed at strengthening the regulation, supervision and risk management of the banking sector (i.e. the core Basel 3 capital and liquidity reforms)
o CRD 4 – the European Commission’s consultation which considers how the Basel proposals could be applied in Europe.

While the core of these packages is clear the complete scope remains fluid. The reform, while broadly welcome, raises a number of issues outlined below:
o Outstanding detail of the proposals and calibration
o Implementation and transparency of the policy making process
o Convergence of supervisory approach
o SIFIs & G‐SIFIs
o Key policy areas

This Briefing Note reflects the state of play as at the time of writing.

Full Briefing Note