BASEL III AND SIFIS: RULES AND REALITIES

Within months of the enactment of Dodd-Frank, international regulators proposed sweeping new capital and liquidity rules that would apply to all internationally active institutions. While initially many banks said a proposed 7% common equity ratio by 2019 was acceptable, they have grown increasingly anxious as regulators have discussed forcing the biggest banks to hold even more capital. Systemically important financial institutions are likely to face a capital surcharge of at least 3% while regulators have also discussed adding higher requirements in good economic times. The panel will discuss the impact of these new rules on the banking industry, including whether they might slow economic growth or add a vital new safeguard when the next financial crisis hits.