World Council Supports "Simplified Alternative" to Basel III Market Risk Capital Requirements
World Council supports most aspects of the Basel Committee on Banking Supervision's proposal to establish a “Simplified Alternative” to Basel III’s standardized approach to market risk capital requirements, which would apply to less complex banking institutions such as credit unions.
As proposed, the Simplified Approach would be a recalibrated version of the Basel II standardized approach with the addition of “scaling factor” multipliers. World Council strongly supports the Committee’s proposal not to include asset-size or trading-book-size limitations that would restrict an institution’s eligibility to use the Simplified Alternative
A copy of the comment letter can be viewed here.