Changes in regulation and capital types following the financial crisis

Описание: What improvements have been made to capital standards in recent years?

Over the past decade governments, regulators and financial institutions themselves have made a number of game-changing strides to strengthen bank solvency levels: increasing minimum capital requirements and introducing stricter rules on what constitutes bank capital. Improvements include:
The Basel III global capital standard, which outlined stricter regulations on capital and risk-weighted asset calculations.
An alphabet soup of new capital regulations, including Total Loss-Absorbing Capacity (TLAC) at a global level and its European iteration: the Minimum Requirement for Own Funds and Eligible Liabilities (MREL).
Myriad government-led stress tests.


Bank capital structures today are much simpler. They ensure that institutions are adequately equipped to continue critical functions without threatening financial market stability. And there is a clear hierarchy of loss absorption and capital subordination that ensures the burden of losses in any financial crisis situation is transferred from taxpayers to stakeholders. This is referred to as a bail-in regime.


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January began her career in 1999 with Bank of America in Charlotte, NC. From the Credit Products team, she moved into fixed income bond research covering Telecoms and Financials. While in London, January focused on financial institutions bond research until her Director and head bond analyst role at Deutsche Bank.

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