For our final panel, we will look back at the lessons learned from the pandemic and the swift action that was taken by regulators to keep credit flowing to the real economy. @sabrush moderates, with @ACPR_actu @federalreserve @BNPParibas @jpmorgan @ISDAConferences
ISDA Thu 19 Nov 2020 16:08

The intention is to launch the notice of proposed rule making next year, but it is hard to be exact on the date because COVID-19 is hanging over us, says the Fed's Barger @ISDAConferences
ISDA Thu 19 Nov 2020 16:08

US intends to go live with the Basel III market risk rules and CVA in January 2023, following the forthcoming launch of a notice of proposed rule making and a US-specific hypothetical portfolio exercise, says the Fed's Norah Barger @ISDAConferences
ISDA Thu 19 Nov 2020 15:58

Now it’s time to hear the US perspective, with a keynote address from Norah Barger, senior advisor, division of supervision and regulation @federalreserve
ISDA Thu 19 Nov 2020 15:43

49.5% of event participants think the Basel III framework would have partially mitigated the procyclicality of capital requirements through the crisis if already implemented @ISDAConferences
ISDA Thu 19 Nov 2020 15:18

Global consistency of Basel III is important because if you have jurisdictional differences, it can really lead to a very costly implementation. Even a difference in timing can also cause an expensive implementation, says Charuhas Pandit @MorganStanley @ISDAConferences
ISDA Thu 19 Nov 2020 15:13

Capital models performed as you would expect during the COVID crisis and regulators were very quick and effective in responding, but the crisis isn’t really over so the cooperation will need to continue as the it evolves, says Shaun Abueita @EYnews @ISDAConferences
ISDA Thu 19 Nov 2020 15:03

45.2% of event participants say action by regulators to mitigate the trading book impacts of COVID-19 were adequate and timely @ISDAConferences
ISDA Thu 19 Nov 2020 15:03

The coronavirus crisis showed that if you follow the Basel 2.5 or preliminary Basel III regimes as they stand, then they are procyclical - but regulators showed flexibility in their response, says Charuhas Pandit at Morgan Stanley @ISDAConferences
ISDA Thu 19 Nov 2020 14:53

We as banks had been in a period of intense regulatory scrutiny for a decade but this crisis felt decidedly different. Banks were part of the solution and there was a real understanding we had to cooperate and face this together, says Katherine Wolicki @HSBC @ISDAConferences
ISDA Thu 19 Nov 2020 14:48

Our first panel will look ahead to the implementation of trading book capital requirements at the national level, what firms are doing to prepare and how the pandemic has affected implementation, with @EYnews @Nomura @GoldmanSachs @MorganStanley @HSBC @ISDAConferences
ISDA Thu 19 Nov 2020 14:38

Our response to COVID-19 gave targeted and temporary flexibility to banks to face exceptional circumstances that does not permanently weaken the prudential framework. Our commitment to implement Basel III in the medium term remains unchanged, says EC’s Berger @ISDAConferences
ISDA Thu 19 Nov 2020 14:38

Given the uncertainty of the evolution of the pandemic, it is essential to monitor the effectiveness of the measures already in place, and we are ready to implement additional measures if necessary, says the EC's Berger @ISDAConferences
ISDA Thu 19 Nov 2020 14:33

During this crisis, unlike in 2008, banks were not at the root of the crisis, they were part of the solution and we are counting on them to continue to be part of the solution, says Nathalie Berger @EU_Commission @ISDAConferences
ISDA Thu 19 Nov 2020 14:23

We wanted to provide targeted, temporary and limited action, in coordination with other agencies, to ensure banks were able to continue to lend to the economy during the crisis, says the EC's Berger @ISDAConferences
ISDA Thu 19 Nov 2020 14:18

The spike in volatility as a result of COVID-19 in March resulted in a material increase in market risk capital - this had to be addressed through a proportionate and immediate response, says the EC's Nathalie Berger @ISDAConferences
ISDA Thu 19 Nov 2020 14:18

ISDA welcomes Nathalie Berger, head of unit, banking regulation and supervision @EU_Commission, to deliver a keynote address @ISDAConferences
ISDA Thu 19 Nov 2020 14:08

We are now entering a critical phase in the rule-making process and legislative proposals on the new trading book requirements are expected in the US, EU and UK next year. Consistency in the timing and content of the requirements must remain a priority, says @ScottOMalia
ISDA Thu 19 Nov 2020 14:08

Procyclical capital requirements threaten to choke off banks’ support for the real economy at a time when it is needed most. The COVID crisis underscores the importance of reducing procyclicality in the revised trading book capital standards, says @ScottOMalia @ISDAConferences
ISDA Thu 19 Nov 2020 14:08

A closer look at the experience of the COVID crisis shows why this is so important, says @ScottOMalia. In a sample of 20 banks, RWAs increased by more than 45% for CVA, while counterparty credit risk and market risk RWAs rose by 20% and 22%, respectively @ISDAConferences
ISDA Thu 19 Nov 2020 14:08

However, banks must also be available at times of stress to support the real economy. If capital requirements spike in a crisis, it lessens their ability to do so – which is why regulators have sought to reduce procyclicality, says @ScottOMalia @ISDAConferences
ISDA Thu 19 Nov 2020 14:08

Since 2011, internationally active banks have doubled their common equity tier-one capital to nearly €3.9 trillion. Enhanced capital requirements have increased the resilience of the banking sector and enabled it to withstand recent shocks, says @ScottOMalia @ISDAConferences
ISDA Thu 19 Nov 2020 14:08

Revised capital requirements for the trading book will be with us for years to come, so it’s vital they are implemented in a consistent and risk-appropriate way, says @ScottOMalia @ISDAConferences
ISDA Thu 19 Nov 2020 14:08

Keeping implementation of the revised CVA and FRTB on-track would have been difficult and the Basel Committee should be credited for announcing a one-year delay in late March. This was critical in feeing up resources to support the real economy, says @ScottOMalia
ISDA Thu 19 Nov 2020 14:03

The escalation of COVID-19 to a global pandemic in March came at a time when the pipeline of regulation was already full, with the final components of Basel III due for implementation in January 2022, says @ScottOMalia @ISDAConferences
ISDA Thu 19 Nov 2020 14:03