US adopts Basel III

The US adoption of Basel III attracted some discussion on the leverage ratio, see Bloomberg, fuelled by a comment from Daniel Tarullo:

“The Basel III leverage ratio seems to have been set too low to be an effective counterpart to the combination of risk-weighted capital measures that have been agreed internationally.” (RTRS)

This comment nicely dovetailed with the release of a Basel committee study on the reliability of risk-weighted assets, click here for the Basel study, and here for a similar study by the EBA.

See here a memo on Basel III by Simpson Tacher.



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