Basil 3 on the way

So we have all heard of the Basil 3 stuff regarding the banks and this basil 3 change over.Today I'm talking with a co-worker that went to a group meeting of an organization that he is a part of called Life-Leadership.Its some kind of information library dvd's on all sorts of life skill information that they sell on the internet.Anyway the people that started this(million aires) brought up how this new banking system is to be implemented on july 1st. I had said to him, basil 3 and he said yeh thats it (as he had forgotten that term that these life guys had said).I just thought I'd pass this on and dont know how this will effect OUR routine but we have been hearing about this for quite sometime and a recently new co-worker at a non-dinar meeting brings this up.Maybe some one here can run the implications on this one

First, I must point out that Basel III is not a banking system, but rather an accounting standard.

Implications to the average person zero, implications to small local banks, also zero. Implications to larger banks with state charters, minimal unless they choose to participate. Implications to nationally chartered banks, significant. It will change how they count assets on their balance sheets and how they calculate their assets and liabilities on their balance sheets. The reality is that there will not be much of a change since the larger banks have pretty much been in compliance since last fall, and the smaller nationally chartered banks have additional time (another year or so I forget the exact time) to come into compliance.

Strictly speaking, you could say none of the US banks will be Basel III complaint since the Fed did not adopt the Basel III standards but modified them. For the most part they are actually slightly stricter, but also allow for additional flexibility in some areas, especially for smaller banks. Also they do not apply to banks that are not nationally chartered. Keep in mind, the Basel III standards are completely voluntary, it is up to the individual nations as to how and IF they use them.

That says it all to me then, out the window it goes........Thanx ..Delete the thread

Clayf,  would you mind if I keep the thread as others may benefit from it or want to further the discussion.  It is up to you though.

Ponee wrote:Clayf,  would you mind if I keep the thread as others may benefit from it or want to further the discussion.  It is up to you though.

Of course you can,never a problem with this man  :spring: