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  Humayun Ali June 5, 2011 19:17

  I received the following message from this page, however seems that the post is deleted.  Anyways the Basel III Submission i referred to was an in-house and not part of pillar III submission.

   

  Thanks 

   

   

  Humayun,
   
  Wonderful, can you share the report ... Under Basel II - Pillar III and inline with Basel III this information should be public.
   
  rgds,
   
  
  Humayun Ali said:

  Hello Beth, to answer your question yes some banks have started reporting  Basel III capital to RMC. My bank has completed and submitted the capital last Wednesday (Referring to Bank in Saudi Arabia).

   

  Take Care

   

  Humayun

   

   
• 

  Humayun Ali June 3, 2011 23:46

  Hello Beth, to answer your question yes some banks have started reporting  Basel III capital to RMC. My bank has completed and submitted the capital last Wednesday (Referring to Bank in Saudi Arabia).

   

  Take Care

   

  Humayun

   

   
• 

  Michael Morton June 3, 2011 13:53

  Thank you Martin! 

   

  I've been involved in implementing Basel II - Pillar 3 for an Australian bank (overseas parent) and I'm looking forward to implementing Basel III if and when the opportunity arises.  I have a unique systems/finance background.

   

  Thanks again for your insights.

   

  Michael

   

   

   
• 

  Beth Pitzer June 3, 2011 13:43

  Good insight!  Thank you. Beth
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  Martin Davies June 3, 2011 5:33

  The Aussie banks are really moving through the work that needs to be done for Basel III and the local regulator APRA has already announced the instruments it classifies as liquid enough for capital.  All that said there are some stubborn hurdles that need to be overcome such as dimensioning wrong way risk.

   

  I was speaking to the head of treasury for one of the Aussie banks the other day and we went through his presentation approach for managing and reporting the banks liquidity in-line with Basel III. I have to say it was complex but his model was elegant and treated market and funding liquidity cleanly.

   

  If Australia follows form as it did with Basel II, it will be through the framework elements in six months and signed off.  All that said when I look at some of the other Basel II implementations across the planet, some jurisdictions are just moving into Basel foundation approaches, so the disparity of risk measurement practice is not uniform at all across the globe - that is for sure.

   

  I was asked the other day why the Aussie banks were so far ahead and on top of the pack. I put it down to deep investment into Basel II advanced and IRB approaches and, that has allowed them to leverage easily across other initiatives such as Basel III.  Banks which have struggled to launch their Basel II program or have drip fed the development or settled for the easy option of foundation and basic implementation for Basel II are going to be in for a hell of ride to meet any sensible level of Basel III implementation.
• 

  Michael Morton June 2, 2011 23:31

  Thanks again Martin,

   

  The Westpac report is very comprehensive and the CBA might do well to follow.

   

  Do you know if the Australian Banks are ready to implement Basel III?

   

  Best regards,

   

   

  Michael

   
• 

  Beth Pitzer June 2, 2011 22:01

  Thank you, Martin!  These reports are very helpful!  As you know, presentation is very important.  I knew where to get the numbers, but I love the format the international banks have come up with..............All my best, Beth Pitzer 
• 

  Martin Davies June 2, 2011 20:37

  This report window at CDR.FFIEC.Gov is interesting and there are lots of options however I don't think the template / wizard shows the RWA and capital etc as required by Basel.

   

  If we take the Australian banks for example which are all running internal ratings based approaches + they have done Pillar III, they have to publish this information as regulated by APRA ... So lets grab some of these reports say from the Commonwealth Bank (My old dear bank), Westpac and NAB

   

  http://www.commbank.com.au/about-us/shareholders/pdfs/2011-asx/Comm...

   

  National Australia Bank report can be found here

  http://www.nabgroup.com/0,,96819,00.html

   

  Westpac report can be found here

  http://www.westpac.com.au/docs/pdf/aw/ic/Pillar_3_Report_Mar_2011.pdf

   

  From a quick look I have had at a couple of these, it's quite impressive ... Have a look at the Westpac report and you will see what is reported.
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  Beth Pitzer June 2, 2011 19:56

  Thank you, Martin!  I may just use some of the format from the Uniform Bank Performance Report, Pg 11A on Capital (Tier 1, Tier 2, adjustments, and changes in the Risk Weighted Assets and off-balance sheet items) or some type of roll-foward, but I just wanted to see if anyone was ahead of the curve ball.  Beth

   

  Here's the link to America's UBPR reports,

  https://cdr.ffiec.gov/public/ManageFacsimiles.aspx

  View or download data for individual institutions - FFIEC Central Data Repository's Public Data Dis…
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  Martin Davies June 2, 2011 15:36

  In respects to reporting risk based capital, sure all the banks that are Basel II certified and running Basel II-pillar III are doing it, certainly all the banks in Australia and most of the Singapore banks are at a Basel II-pillar III level.

   

  Have any of the banks started doing this for Basel III as yet?

  I don't think so - There is still too much work to be done however most of the top banks are reporting regulator capital under Basel II.

   

  You Wrote: high level of problem assets

  Response: I presume these are credit related risk weighte assets, if they are loans or on the retail banking book not too much is going to change.  If they are other types of assets say on the trading book ie swaps etc then a different discussion needs to be had.

   

  rgds,

   

  Martin.