The implentation of Basel III is taking its time. The adjustment periods are very long and drawn-out; the refinement of the concept of capital will not be completed until 2022. We have also seen that the implementation of the TLAC requirements, ratified at November’s G20 meeting, will not happen quickly. Until these adjustments are completed, the banks and the markets will still feel there is no break from regulation.
BBVA Research | March 30, 2015 | The TLAC’s public consultation period ended on 2nd February. Now is the time for carrying out a comprehensive Quantitative Impact Study (QIS) to define the optimal calibration of the TLAC. The FSB will assess the potential impacts on financial system, financial stability and the real economy.