REGULATORY AFFAIRS

Capital and Liquidity

What We Do

IIF has been actively engaged in the reform effort surrounding the Basel capital adequacy standards for internationally active banks for over a decade, representing the views of the banking industry and advocating a Basel Accord that provides adequate incentives for advanced risk management practices while bringing stability to the financial sector.

In 1999 the IIF established a Steering Committee on Regulatory Capital to evaluate the proposed changes to this critical component of international banking regulation. The Committee is a senior-level body that serves as the primary vehicle for direct interaction with the Basel Committee to ensure that industry positions are communicated at the highest level. Most recently it has played this role as the Basel III standards are being finalized and implemented.

Under the Committee are a variety of working groups focused on different topic areas under the purview of the Basel Committee.

Current Workflow

The IIF is currently organizing industry efforts to monitor implementation of Basel III and provide feedback when requested and needed. There are still many open questions regarding the framework, from the liquidity and leverage ratios to the reviews of securitization and the trading book.

Basel III Standards

Read more on the Committee and its working groups