How will Basel III impact banks?
The most stingent requirement of Basel III is a dramatic increase in capital reserves to absorb unforseen losses. Regulators have increased these figures based on their assessment of how much trouble could happen in the future. The main effect of this is to cause banks to divert money from operating uses such as lending towards capital reserve accounts.
||I am unable to log in even when I enter my correct username and password. What could be causing this?
"Why do IRA analyses only show the US portions of foreign banks?"
U.S. regulations on banking only require foreign institutions to report information on their U.S. operations in their CALL reprots to the FDIC. These detailed data are required to drive IRA's computations. We do so for these U.S. operating units.
The entire global entity does not report to U.S. bank regulators. IRA does pull in the annual filings by these global companies that are filed with the U.S. Securities and Exchange Commission (SEC) for trading markets compliance purposes but these Form 20-F -- or form 40-F for Canadian firms -- filings are not as detailed as the banking report data.
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||Do you calculate the TCE Ratios?
Yes. Tangible Common Equity scores are calculated by IRA for each operating unit looking at the specific data for each FDIC unit. This enables us to compute these scores for the subsidiary units of a bank holding company.
The data can be used to impute the banking units contribution to the consolidated public company TCE's which are based on stock market prices.