BCBS D340

Definition

BCBS D340 is a document published by the Basel Committee on Banking Supervision on November 2015 in the Credit Risk category.

Title

Haircut floors for non-centrally cleared securities financing transactions.

Abstract

In October 2014, the FSB published a report on Strengthening Oversight and Regulation of Shadow Banking - Regulatory framework for haircuts on non-centrally cleared securities financing transactionsand introduced a framework for haircut floors for non-centrally cleared SFTs. As part of this framework, the FSB recommended that the Basel Committee on Banking Supervision (BCBS) incorporate the haircut floors into the capital requirements for non-centrally cleared SFTs by setting higher capital requirements for transactions with haircuts traded below the haircut floors. The objective of the BCBS proposal is to create incentives for banks to set their collateral haircuts above the floors rather than hold more capital.

Document Profile

• Publication Date: November 2015
• Publication Type: Consultative
• Publication Status: Closed
• Publication Category: Credit Risk
• Number of Pages: 18
• Keywords: Credit Risk, Shadow Banking, Financial Stability Board

See Also

• BIS Website: Web Page
• PDF File: Download

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