Basel III: Gold to be considered for Tier 1 status

The GSIBs cannot raise their cash reserves 16%. That's what I got from the report.

Fed’s Barr says ‘broad’ changes coming to Basel III capital proposal​

Federal Reserve Vice Chairman for Supervision Michael Barr said today that regulators expect “broad and material” changes are coming to the proposed Basel III endgame capital standards, Bloomberg News reported. Speaking at a University of Michigan event, Barr echoed Fed Chairman Jerome Powell’s March 6 testimony before the House Financial Services Committee, in which he told lawmakers that significant changes will likely be made before the rule moves forward. Barr is the chief proponent of the proposal.

“I am working very closely with Chair Powell and other members of our Federal Reserve board to try to reach a broad consensus,” Barr said, according to Bloomberg. Specifically, he said criteria related to operational, market and credit risks could be adjusted.

More:

searcher said:

LBMA faces challenges as it looks to establish gold as a High Quality Liquid Asset​

(Kitco News) - Gold has established itself as a store of value for thousands of years; however, the London Bullion Market Association says it faces further work to establish it as an important financial asset within the larger global marketplace.

After helping bullion banks avoid a funding crisis because of Basel III regulation, the LBMA said they are now focused on getting physical gold recognized as a High-Quality Liquid Asset (HQLA).

According to the Basel Framework, laid out by the Bank of International Settlements (BIS), financial institutions must hold HQLA to cover their total net cash outflows over a 30-day period under the stress scenario.

More:

LBMA faces challenges as it looks to establish gold as a High Quality Liquid Asset

Kitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices

www.kitco.com

Click to expand...

Update:

LBMA and WGC met with BIS to reclassify gold as a High-Quality Liquid Asset under new Basel III banking rules: GJEPC report​

Jul 11, 2024 - 12:27 PM

(Kitco News) – The London Bullion Market Association (LBMA) and the World Gold Council (WGC) are pushing to have gold reclassified under the Basel III banking framework, according to a report published Thursday by India’s Gem & Jewellery Export Promotion Council (GJEPC).

The GJEPC wrote that senior LBMA representatives including Paul Fisher, Ruth Crowell, David Gornall, and Edel Tully, joined the WGC’s Mike Oswin in Basel, Switzerland for a meeting with the Bank of International Settlements (BIS). The LBMA-WGC delegation met with Neil Esho, Secretary General of the Basel Committee, and Noel Reynolds, the Head of Basel III Implementation, to make the case for gold as a High-Quality Liquid Asset (HQLA).

The reclassification of gold from its current status as a Tier 1 asset to an HQLA “would bring about enhanced market stability, improved liquidity, regulatory compliance benefits, greater confidence and trust in the financial system, and overall economic and financial stability,” the GJEPC report said. “This would be advantageous for both financial institutions and the broader economy.”

More:

In 3 years gold will go to $5k and everything except rare numis will go into the smelter to make large bars for central banks.