Shearman And Sterling

balance scale

June 16, 2014

Basel III Framework: Large Exposures

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Even banks with strong capital ratios may fail as a result of the sudden failure of a counterparty or group of connected counterparties. To address this risk and to complement the now near-final Basel III framework, the Basel Committee on Banking Supervision has published its final standard on "large exposures" which aims to ensure that exposures to counterparties are appropriately monitored and limited. The final standard will provide a degree of relief and flexibility to US and EU banks given the stricter standards proposed last year. However, requirements to conduct onerous assessments remain, particularly as regards the due diligence of exposures when investing in structures with underlying assets.

View full memo, Basel III Framework: Large Exposures

Authors and Contributors

Barnabas Reynolds

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5528

+44 20 7655 5528

London

Thomas Donegan

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5566

+44 20 7655 5566

London

Hervé Letréguilly

Partner

Capital Markets

+33 1 53 89 71 30

+33 1 53 89 71 30

Paris

Winfried M. Carli

Partner

Finance

+49 89 2388 8200

+49 89 2388 8200

Munich