International Banking Law and Capital Markets Assignment

International Banking Law and Capital Markets - naming ExampleThere is a need to develop more stringent standards for the curses to address the deficiencies that come on the surface in the fiscal crises of late 2000. The introduction of Basel-111 aims at to strengthen the capital requirements of the bank and the regulative requirement of bank liquidity and bank leverage. In Basel II, the risk management was out sourced to third party. The Ratings of financial instruments were conducted by the outsource agencies Fitch ibca, moody and poor and standard without intervention of official agencies. The AAA ratings onmortgage backed securities, recognition default swapsand other instruments in practice evidencing extremely bad credit risks. The implementation of Basel triple surely will decrease annual GDP growth to the extent of 0.05 to 0.15 percentages. It is state of the directors of the company to keep an eye onmarket liquiditycondition that enables them to hold major assets for th e right of material losses2. Requirement of Basel triplet The Basel III primarily addresses and focuses on the liquidity risk, capital adequacy ratios and melodic line testing. It requires banks to follow the requirement of Basel III and to compute the liquidity and leverage ratios accordingly. Therefore, the banks are to keep themselves align with the overbold requirement in order to integrate all relevant data to develop a revolutionary approach of data analysis and modeling. Basel III demands sufficient transparency and zero rated documentation ever than forward to ensure that the deployment of funds would bear fruits3. Banks must ensure creation of new models that ensure compliance of Basel III requirement. It is a matter of fact that most of the institutions are reluctant to implement it in its true spunk due to reasons best known to them. However, they remove no other option but to implement it in order to avoid penalty from compliance and monitoring watch dogs. In ot her words, compliance of Basel III requirement is mandatory and not optional. Keeping in mind the necessity, the banks are developing infrastructure and models for the banks to pip best use of its capacity to pin point and respond to the profit fashioning opportunities4. According to Simon Nixon, no one disputes the broad thrust of Basel III, that banks should hold much higher levels of higher-quality capital. Indeed, all major European banks have well-developed plans to meet the new rules ahead of time.5 It is a matter of fact that in todays world each and every organization including banks heavily relies upon latest technology to meet the requirement of guest satisfaction besides regulatory compliance by the banks. The more efficient business decision making are based on the reliability of their quality data. Any bank who successfully receives the data by reliable domestic sources within the bank to position its data warehouse on sound footings united with technology infrastr ucture stands to deliver the goods efficiently in terms of compliance and better business6. Basel III tightened up the rules on what could be counted as core capital, increased the risk-weights that determined how much capital a bank should hold against a particular exposure and finally introduced a tough new minimum ratio of core capital to risk-weighted assets, set at 7% for small banks and rising to 9.5% for the largest banks deemed