However, if one area were to be highlighted where momentum has been particularly notable, it would be that relating to solvency and liquidity under the Basel Committee on Banking Supervision (BCBS). Indeed, within a relatively short timeframe, and as planned, the foundations have been laid for a far-reaching change in capital requirements, and innovative initiatives in the area of liquidity management have taken shape.
This article—which to some extent can be read as a continuation of the one published last year in this same “Observatory on the Reform of European Financial Markets” under the title “The Regulation of Credit Institution Capital. Ongoing Reforms”—focuses primarily on the analysis of successive proposals by the Committee, presented in a chronological sequence that we believe helps to better understand their meaning and which extends to the important decisions taken in September 2010. Steps remain to be taken, which are outlined in due course.
