Basel III just keeps on giving: The global framework for banking regulation is already extremely complex. Newly presented rules will complicate matters further.
Basel III is the name of the global framework for banking regulation. It is the reaction of regulators around the world to the financial crisis of 2007/08. Even ten years after the crisis, the work on Basel III is still ongoing. Yesterday, a so-called “output floor” was added. The new rules should prevent banking institutions from abusing their internal risk management models to overstate the size of their capital ratios.