Basel III and Discount: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Cross reference with Discount rate page.)
 
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A third amended and strengthened international bank capital adequacy framework under development, designed to improve upon Basel II.
# ''Noun.'' In relation to a discount instrument, the difference between the current market price and the redemption amount.
 
# A coupon bond trading in the market ''at a discount'' has a market value less than its par value.
Basel III leverage ratio framework and disclosure requirements were issued in January 2014.  
# A foreign currency trading ''at a discount'' in the forward foreign exchange market is weaker in the forward market than in the spot market.
 
# ''Verb.'' In relation to a money amount, make smaller.  For example, to discount back a future cashflow to a (smaller) present value.
 
# ''Verb.'' In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value todayToday's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount.
Among other reforms, Basel III aims to reduce moral hazard and the related 'too big to fail' problem.
   


== See also ==
== See also ==
* [[Basel II]]
* [[Coupon bond]]
* [[Capital adequacy]]
* [[Discount instruments]]
* [[CRD IV]]
* [[Discount rate]]
* [[Dodd-Frank]]
* [[Premium]]
* [[Liquidity Coverage Ratio]]
* [[Spot market]]
* [[Leverage ratio]]
* [[Macroprudential]]
* [[Microprudential]]
* [[Moral hazard]]
* [[Net stable funding ratio]]
* [[CertICM]]
* [[Sell-side firm]]
* [[The future of pooling]]
* [[Too Big To Fail]]
* [[Volcker Rule]]
 
 
===Other links===
[http://www.treasurers.org/node/8652 Basel III in progress but much to be done: An update, John Grout, ACT January 2013]
 
[https://www.bis.org/publ/bcbs270.htm Basel III leverage ratio framework and disclosure requirements January 2014]
 
[[Media: Basel III Jan 2014.pdf]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Manage_risks]]

Revision as of 17:17, 30 December 2013

  1. Noun. In relation to a discount instrument, the difference between the current market price and the redemption amount.
  2. A coupon bond trading in the market at a discount has a market value less than its par value.
  3. A foreign currency trading at a discount in the forward foreign exchange market is weaker in the forward market than in the spot market.
  4. Verb. In relation to a money amount, make smaller. For example, to discount back a future cashflow to a (smaller) present value.
  5. Verb. In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value today. Today's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount.

See also