The new Basel III Framework - Navigating Changes in Bank Capital Management

BaselIII establishes tougher capital standards through more restrictive capital definitions, higher risk-weighted assets (RWA), additional capital buffers, and higher requirements for minimum capital ratios. The reforms will fundamentally impact profitability and require transformationofthe business models of many banks.Thesereformswill also require banksto undertake significant process and system changesto achieve upgrades in the areas of stress testing, counterparty risk,and capital management infrastructure.