U.S. financial regulators should carefully consider the final rules they administer when interpreting the Basel III capital requirements, comptroller of the currency Thomas Curry said on May 9.
When speaking with members of the media after delivering a speech in Chicago, Curry mentioned key aspects of the final rules that deserve scrutiny, indicating that the leverage ratio should be examined to consider whether it should be made any higher, according to The Wall Street Journal.
The U.S. interpretation of the Basel III requirements has been unclear since late last year, when the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency called off the prior deadline that banks had to begin their adoption of Basel III, which was January 1, 2013.
The Basel Committee has since added further confusion when it announced early this year that national supervisors had the ability to provide their banks with the ability to use a wider range of financial instruments toward fulfilling the liquidity capital ratio requirement.
Curry stressed urgency in finalizing the nation's Basel III interpretation, saying that "we need to get things done … People need to know what the rules are."
◦ Asset Liability Management
◦ Portfolio Risk
◦ Sensitivities & Hedging
◦ Stress Testing & Scenario Analysis