This is what forced him to the IFRS standards

Strengthen and improve the capital of banks

The idea of the Committee is relatively simple. He is able to compare the strength of the banks with each other and ensure that they can absorb losses of large amounts in order to avoid new bankruptcy. For Basel regulators, there are the own funds of better quality than others in their capacity of absorption of these losses. In this context, they have focused on the concept of ratio "Core" Tier-1, consisting of the capital of better quality, and have defined new more restrictive rules by significantly strengthening the own funds allocated to the riskiest activities.

The "core" Tier-1 ratio will no longer contain ordinary or equivalent - actions such as the shares for mutual benefit groups - and benefits set aside. Will have to be deducted on which hybrid instruments banks continue to communicate as "core" Tier-1, such as the super-subordonnés titles, and minority interest in other financial companies, intangible assets and deferred tax assets. Most of these deductions already exist but they are divided in the Tier-1 half and half in the Tier-2. With Basel 3, they will be deducted at 100 of the "core" Tier-1, which will involve mechanical ratio decreased, whereas the Committee should review its requirements on the rise.

The leverage ratio

The leverage ratio to evaluate the size of banks relative to the size of their balance sheet commitments already exists. In Europe, this ratio is only a secondary indicator that is not truly determinative in the calculation of own funds more hard. Under pressure from the United States however, the Committee intends to make a measure integrated directly into the pillar 1 Basel 2, one that enables to calculate the capital requirements, all in order to avoid a too strong debt from banks. European banks are very afraid that the calculation of the "leverage ratio" does not account accounting distortions that exist today between the US and Europe (including compensation accounting or prudential that are possible on the derivatives and the "rest" in the United States, but which are impossible in Europe). They allow us banks display size much smaller than European updates even while their commitments may be more important. But, according the press release of December 17, the Committee should take account of these distortions.

Reduce the cyclical nature

It plans to introduce a series of measures to promote the construction by the banks of "bags" of capital in the times when the economic situation is good and reduce them in more difficult times. For the Committee, would stabilize the banking system in smoothing shocks. Currently, banks provisioning risks once they are proven. This is what forced him to the IFRS standards. Impose the new measure would bring the accounting standards of the prudential framework.

Introduce of new liquidity ratios

The Basel Committee proposed the establishment of two ratios of liquidity. The first ("liquidity coverage ratio") would impose international banks to hold a stock of readily marketable assets, without risk, which would enable them to withstand a crisis that would result, for example, by massive withdrawals on the part of applicants for thirty days. The second ("net stable funding ratio") ratio is the same objective over a year. More binding, it must encourage credit institutions to extend their long-term resources, supposedly more stable funding profile.