How to pronounce“bosel”in English

bosel 3 risk weighted assets um none of us have the the data that are sufficient

bosel one and Basel one as I think Andy halane from the bank of England pointed out can be done by a competent clerk with an envelope and a

the bosel one standard you would be increasing Capital by more than you otherwise would have intended um that's balanced by the recognition that exactly

what the bosel 3 Capital requirement risk weights will be um you can only sort of proxy that by looking at the static behavior of firms and you have to

the uh bosel committee have made such a severe assumption for both the liquidity

the purpose of bosel 2 it's only mandatory for banks that have Consolidated assets of $250 billion or more or $10 billion of foreign assets

Basel one or bosel 2 failed to provide a reliable indicator of A bank's riskiness or the extent to which a bank might be expected to suffer greater losses

uh translation between bosel one and bosel 3 uh is really where our our Basel uh 37% requirement which is the capital uh

suspend the application of bosel 2 this Capital requirement so you don't just

more of the international detail through the bosel committee's website um so briefly the empirical strategy for the regulatory minimum is

asset calculations uh updated now for bosel 3 um uh economic risk Capital so

an empirical strategy to inform the calibration of the bosel committee um and she has written on this both in the New York fed as well as you can read uh

suggested that the minimum standard should be on a bosel one basis across jurisdictions sort of somewhere in the four to 6% of risk weighted assets um

assets um you'll note I conspicuously said bosel one and bosel 2 in that case um because one of the challenges is is if you well the the first best solution

reason the basis for this is as I noted if bosel 3 risk weats are increasing if the risk weighted assets under bosel 3 are increasing then if you just went for

of the liquidity proposal in contrast to the capital requirements under bosel 2

is a crazy Basel 2 calculation thing and it's true bosel 2 is a tough machine it's about a quarter million calculations so could anybody possibly

to do that and so you have to proxy for what under bosel 3 would expectations of

as the minimum was should have been under 4 to 6% under bosel one that got translated into a minimum of four and a half percent don't ask me how we got to

meaningful important ways um the changes will be fast uh I know the bosel

in the world and check how those Trends have been over time and when bosel 2 is implemented Adam can I put it up I was actually

appreciate the opportunity today to really try to give some perspective on what were at least one if not several members of the bosel committee thinking

results that you know you could reasonably conclude would be anywhere from 3 to 7% of bosel one risk weighted assets some cases bosel 2 risk weighted

room spent quite a few hours trying to proxy what the capital requirements would be under bosel 3 uh as well as analysis that was

down through the US system Financial system will that be pushed um as you all know the bosel 2 is only mandatory in the United States for banks that have uh

he he explained it well but if you think about it um you know our our bosel one

the minimum Capital standard plus the conservation buffer that uh Mark talked about uh is translates into double digits of bosel one Capital requirements

let me redirect this question to you so as someone who was pretty critical of where the bosel 3 process is does that suggest that the question about adding a

this is one of those cases where I think smartly we are seeking to tie our own hands um just to get the factual part out of the way uh under bosel one and

that common Equity be the predominant form of of tier one Capital but there was no explicit common Equity standard um as you've seen under bosel 3 there is

then the other piece of that is that there was a real commitment in in the liquidity standards to have something that looks a lot more like sort of bosel

capture in the framework there's a broader question which you didn't ask which is uh to what degree will the liquidity standards in bosel how far