Basel Consultative Package

On December 17, 2009, the Basel Committee on Banking Supervision (the Committee) approved for consultation proposals to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector. Along with the measures taken by the Committee in July 2009 to strengthen the Basel II Framework, the proposals are part of the Committee's comprehensive efforts to address the lessons of the crisis.

The Committee's consultative documents cover the following key areas:

• quality, consistency, and transparency of the capital base
• risk coverage of the capital framework (counterparty credit risk exposures)
• leverage ratio
• countercyclical capital framework and build-up of capital buffers, and
• minimum liquidity standards

When the consultative package was announced, the Committee underscored the need to introduce measures in a manner that strengthens the resilience of the banking sector over the longer term, while avoiding negative effects on bank lending activity that could impair economic recovery. To help calibrate this balance, the Committee initiated a comprehensive impact assessment of the capital and liquidity standards, which will help quantify the impact of the proposals and different options under consideration.

The impact assessment is being conducted in the first half of 2010. Based on this assessment, the Committee indicated that it will review both the regulatory minimum level of capital and the reforms proposed in the consultative package to appropriately calibrate the total level and quality of capital. The Committee has stated that it intends to develop a fully calibrated set of standards by the end of 2010, which would be phased in as financial conditions improve and economic recovery is ensured.

Comprehensive Quantitative Impact Study (CompQIS)
CompQIS Frequently Asked Questions

The full consultative package can be found at: www.bis.org/publ/bcbs165.htm