Basel III is an international regulatory accord that introduced a set of reforms designed to improve the regulation, supervision and risk management within the banking sector. The Basel Committee on Banking Supervision published the first version of Basel III in late 2009, giving banks approximately three years to satisfy all requirements. Largely in response to the credit crisis, banks are required to maintain proper leverage ratios and meet certain minimum capital requirements.
Should SME’s care about Basle III and its LCR and leverage ratios?
Unequivocally yes!
Basle III was developed for banks but, like it or not it, has and will impact their clients and SME’s. The market called it “ A Game changing situation” and for SME’s to ignore it, would be unwise.
Our Deputy Chairman, Yann Gindre, wrote an excellent analysis on Basel III and you have the chance to read it now. Enter your email address here and get your copy for free.