All material subject to strictly enforced copyright laws. © 2022 Euromoney Institutional Investor PLC group

Basel Still Adamant On Restructuring

Buried in a 120 page document is the latest sign that the Basel Committee on Banking Supervision is still insisting on including restructuring as a credit event for regulatory capital relief. In a document published this month, named Quantitative Impact Study 3, Technical Guidance, it states that, "restructuring of the underlying obligation involving forgiveness or postponement of principal, interest or fees that results in a credit loss event (i.e. charge-off, specific provision or other similar debit to the profit and loss account)," must be included.

Credit derivatives professionals and the International Swaps and Derivatives Association are petitioning the Basel Committee to remove restructuring as a requirement for regulatory capital relief.


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree