Commercial Banks and New Capital Regulation

Commercial Banks and New Capital Regulation

Executive Summary

The Basel Committee on Banking Supervision was established by the Central Bank of the United States, the United Kingdom, France, Germany, Italy, Japan, the Netherlands, Canada, Belgium, Sweden, 10 industrial countries at the end of 1974, as an official agency of the Bank for International Settlements, the national central represented by bank officials and banking regulators, the organization is headquartered in Basel, Switzerland, and each year have 4 regular meetings. The purpose is to improve and supplement the lack of a single national regulatory system of commercial banks to reduce the risk and cost of bank failures, the most important form of the united supervision of the International Commercial Bank. In this report, the assignments will firstly analysis that from the regulators of view, about Basel II upgrade to the Basel III what is the major factor. Then find out the main characteristics of the Basel III, also give the view to make a distinction between Basel II and Basel III. In the end, the new regulations bring some results to the bank.

Table of contents

Executive Summary 1

Table of contents 2

Introduction 3

Task 1 4

1.1 The reason of a move from Basel II to the Basel III……………………………………………….…….4

1.2 Measure on Basel III…………………………………………………………………………………………………5

Task 2 6

2.1 Main features of the Basel III……………………………………………………………………………………….6

2.2 Difference between Basel II and Basel III...............................................................…...8

Task 3 9

3.1 Minimum capital requirements 9

3.2 supervision and inspection of the regulatory 9

3.3 market constraints 10

3.4 concerning about new regulation………………………………………….10

Conclusion 11

Reference list 12

Introduction

The report will analyze and discuss the change and...