Basel III Capital and Liquidity Framework: Basel Committee Issues Final Revisions to International Regulation of Bank Capital and Liquidity

Sullivan & Cromwell LLP - December 31, 2010

On December 16, 2010, the Basel Committee released its final framework for strengthening international capital and liquidity regulation, now officially identified by the Basel Committee as “Basel III”. The Basel III final framework incorporates the Basel Committee’s initial proposals for revision of bank capital and liquidity regulation released in December 2009, as supplemented by (i) the Basel Committee’s proposal for a countercyclical capital buffer released in July 2010, (ii) amendments to the initial proposals announced in July 2010, and (iii) calibrations for the capital proposals announced in September 2010 (collectively, the “Basel III proposals”).