In conjunction with release of a proposal to rewrite the standardized credit-risk rules, the Basel Committee has also asked for views on a floor that would prevent risk-based capital (RBC) from falling below a specific threshold even if all of a bank’s assets were scored as low-risk ones. Importantly, nothing in this consultation addresses how high or low the floor should be, joining the consultation on the standardized rules for credit, operational, and market risk in deferring the decision about how much, if any, additional capital banks would need to hold.
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