Basel III’s Impact on Corporate Treasury
There’s little question, the goings-on taking place in Basel, Switzerland, over the summer and last month, culminating in what’s often referred to as the Basel III Accord, will significantly impact financial institutions. What about corporate treasurers? To find out, I talked with Tony Carfang, partner and director with Chicago-based Treasury Strategies. His take: “The regulations that come down on banks will flow through to the banks’ customers.” Moreover, the impact likely won’t be positive, Carfang notes.
Among other changes, the agreement reached by the Basel Committee on Banking Supervision, as outlined here, would boost the minimum requirement for common equity held by banks from 2 to 4.5 percent by 2015. The Tier 1 capital requirement would jump from 4 to 6 percent over the same period. more





