GJ Town India

Gold not require term funding! Recently Dr. Keith Weiner, CEO- Monetary Metals and the president of the Gold Standard Institute USA inks, Will Basel III Send Gold to the Moon! He said, “A number of commentators have predicted that the rules of the Basel III bank regulations will cause gold to skyrocket (no, this article is not about our view that gold does not go up, that it’s the dollar going down, that the lighthouse does not go up, it’s the sinking ship going down in the storm).” Will it? It would be easy to say as with all of their other predictions of gold to infinity and beyond, “wait and see.” But where’s the fun in that? We’d rather look into the nature of the claim, how banks operate, and what the regulation actually says so who wants to understand a bank balance sheet, and regulators’ view of bank risk? In other words, who wants to understand whether gold will skyrocket? If you picture the bank getting pinched by twin pincers, that’s right. One is that fund

Liquidity Risk Monitoring Tools and Liquidity Coverage Ratio (LCR), Disclosure Standards! Presently, the assets allowed as the Level 1 High Quality Liquid Assets (HQLAs) for the purpose of computing the LCR of banks, inter alia, include (a) Government securities in excess of the minimum SLR requirement and, (b) within the mandatory SLR requirement, (i) Government securities to the extent allowed by RBI under Marginal Standing Facility (MSF) [presently 2 per cent of the bank's NDTL] and (ii) under Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) [presently 11 per cent of the bank's NDTL]. It has been decided to permit banks with effect from October 1, 2018, to reckon Government securities held by them up to another 2 per cent of their NDTL, under FALLCR within the mandatory SLR requirement, as Level 1 HQLA for the purpose of computing their LCR.  Hence, the carve-out from SLR, under FALLCR will now be 13 per cent, taking the total carve out