MAJOR CHANGES PROPOSED IN BASEL III (3)
{"Image DocumentName": "MAJOR CHANGES PROPOSED IN BASEL III (3)", "Image ImageDescription": "A series of measures introduced to promote the build up of capital buffers in good times that can be drawn upon in periods of stress ( Reducing procyclicality and promoting countercyclical buffers ). Measures that address procyclicality: Dampen any excess cyclicality of the minimum capital requirement; Promote more forward looking provisions; Conserve capital to build buffers at individual banks and the banking sector that can be used in stress; and. Measures to achieve the broader macroprudential goal of protecting the banking sector from periods of excess credit growth. Requirement to use long term data horizons to estimate probabilities of default, Improved calibration of the risk functions, which convert loss estimates into regulatory capital requirements. Banks must conduct stress tests that include widening credit spreads in recessionary scenarios. Promoting stronger provisioning practices (forward looking provisioning):", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}