Basel 3 and its impact on liquidity measures

Index

1. Introduction

2. Developments in Basel III
2.1. Increasing Capital Requirements
2.2. Liquidity Coverage Ratio
2.3. Net Stable Funding Ratio
2.4. Monitoring Tools and Application of Standards

3. Initial Situation of Banks Regarding Liquidity Requirements
3.1. Quantitative Impact Study of the BCBS
3.2. European Quantitative Impact Study of the CEBS
3.3. Comparison of Results

4. Economic Impacts of the New Liquidity Requirements
4.1. Benefits of the New Liquidity Requirements
4.2. Costs of the New Liquidity Requirements
4.3. Evaluation of the Results

5. Impact of the Liquidity Requirements on Banks and their Business Segments
5.1. Changed Market Conditions
5.2. Impact on the Profitability of Banks
5.3. Impact on Business Segments
5.4. Impact on Central Banks
5.5. Overall Impacts on Banks and Business Segments

6. Evaluating the Liquidity Rules of Basel III
6.1. Static Nature of the Liquidity Measures
6.2. Are Wrong Incentives the Actual Causer?
6.3. Introduction of Basel III in Various Countries
6.4. Additional Comments

7. Conclusion