Global Correspondence

GFMA Submits Comments to the BCBS on the Recognition of Short Positions in the Calculation of Capital Deductions

GFMA provides comments to the Basel Committee on Bank Supervision (BCBS) on the recognition of short positions in the calculation of capital deductions required for investments in unconsolidated financial institutions, as required under Basel III.  GFMA believes that the current Basel III wording will unintentionally restrict banks’ ability to provide liquidity and carry out market making activities, and therefore ask the BCBS to reconsider the requirement.

Download PDF: