RT Journal Article SR Electronic T1 Basel 2.5 and Basel III: The Impact of the
New Capital (and Liquidity) Rules on Securitization JF The Journal of Structured Finance FD Institutional Investor Journals SP 77 OP 100 DO 10.3905/jsf.2013.18.4.077 VO 18 IS 4 A1 Timothy P. Mohan A1 Rachel G. George YR 2013 UL https://pm-research.com/content/18/4/77.abstract AB One of the most significant challenges facing banks participating in the securitization markets is the impact that more-stringent capital and liquidity requirements proposed by the Basel Committee on Banking Supervision may have on the cost to these institutions and their customers of participating in these markets in the future. Additional requirements imposed by the so-called Basel 2.5 and Basel III proposals will substantially affect the incentives of banks to securitize their own assets and to invest in securitizations. In June 2012, the U.S. banking regulators proposed their version of the Basel III capital rules. The U.S. regulators have not yet proposed their version of the Basel III liquidity requirements, which if adopted in the form proposed by the Basel Committee would greatly increase the costs to banks of providing credit and liquidity facilities to securitization structures, including asset-backed commercial paper conduits. This presentation, an explanation of regulatory capital and liquidity requirements for securitizations, outlines the most significant aspects of these proposals that affect securitizations and some of the key industry concerns with these proposals.TOPICS: Security analysis and valuation, legal/regulatory/public policy