Dodd-Frank Act Publications
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When the Dodd-Frank Act was passed it set new standards for risk based capital and leverage ratios that will have to be followed in the future. This article explains the different requirements for ‘well-capitalised’ and ‘adequately capitalised’ banks or systemically important non-bank finance companies and the minimum ratios that apply to them. The aim of this is similar in tone to basel III, and will take precedent over any previous Basel regulations in terms of capital requirement.
Date: March 1, 2011
A further consideration thrown up by the Dodd-Frank Act is that of added supervision over issues of systemic risk. Regulation is defined for systemically important bank holding companies and systemically important nonbank finance companies in order to address any risk to the financial stability of the US posed by these institutions. Find out more about the regulations that relate to this here.
Date: March 1, 2011
One of the aims of the Dodd-Frank Act is to help overcome the difficulties associated with producing accurate credit ratings and risk assessing complex structured products. Part of this process involves the requirement that U.S regulators reduce their reliance on credit ratings. This article shows the extent of the current use of credit ratings by the U.S regulators and the timeline by which certain ratings references will be removed.
Date: March 1, 2011