EBA leans against Basel III in excluding unrealized gains from Regulatory Capital

EBA yesterday published a Discussion Paper (DP) on the exclusion of unrealized gains from regulatory capital. As an advice to the European Commission it basically supports  the current European system of prudential filters – that…

IASB’s stance on AOCI Discussion Paper on the new Conceptual Framework

A large document for sure, and relevant, as accounting is the prime source of capital values. Shaun Drummon of AFR notices the Board’s stance on AOCI: “One of the most controversial has been the liberal…

EBA presents a neat Q&A tool for Capital Questions

It features on the EBA home page, but obscured by the the words “Single Rulebook Q&A”, it is a neat tool nevertheless. Click here for access.

Basel III, US, and AOCI

An interesting aside of the US Basel III adoption is the relief of the inclusion of Accumulated Other Comprehensive Income (AOCI). Its inclusion in Common Equity Tier 1 regulatory capital (CET1) is only mandatory under…