A lot has been written with regard to the introduction of Basel III, both in this magazine and in other media. The world is a different place, that’s a fact. We’ve learned that a more comprehensive insight into the implications of the Capital Requirements Directive is needed.
A lot has been said and written with regard to the introduction of Basel III. However, from discussions with our clients we learn that often a more comprehensive insight into the effects of Basel III on their banking relationships is desirable.
The Bank for International Settlements’ (BIS) capital requirements for banks, also known as Basel III, impact on a wide variety of stakeholders. It's not only the banks that are keen to take note of the additions to the Basel II Accord, but their corporate clients also want to understand the implications. This article examines the various effects on corporates and their treasury departments, and also provides some suggestions on how to cope with the consequences of the Basel III capital adequacy regime.
In November 2012, almost a year after releasing the long-awaited exposure draft (ED) on hedge accounting, the IASB (International Accounting Standards Board) issued a review draft (RD) of the standard on general hedge accounting.
While Basel III may restore the health of the financial markets and the banking industry in the long run, it will also have an impact on the real economy and business in the mean time. The economic impact of Basel III is often mentioned, but seldom analyzed in detail. This article assesses the potential impact of Basel III on companies and outlines some options that corporate treasurers and bankers can explore in order to minimize the effects.