G-20 Leaders Affirm Commitment to Finishing Basel III

According to an article in Reuters on Saturday, March 18th, finance ministers and heads of central banks at the G-20 summit released a joint statement, affirming their commitment to completing Basel III international bank capital standards. This announcement lays to rest speculation that the U.S. will pull out of Basel III, which had been driven by the Trump administration's commitment to broadly roll-back U.S. financial regulations.

"We confirm our support for the Basel Committee on Banking Supervision's work to finalize the Basel III framework without further significantly increasing overall capital requirements across the sector, while promoting a level playing field," the group of finance chiefs said in their statement.

Two ongoing causes of delay in the completion of these rules are continued disagreement between U.S. and European officials on the "output floor" requirement and the need for President Trump to appoint a vice chair for supervision at the Federal Reserve, according to a recent report in the Financial Times.

SFIG members believe that the current Basel capital rules, in their entirety, are overly punitive when applied to securitization. Please see our recent comment letters for more details.

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