US stress test results show Basel III readiness

Author: | Published: 20 Mar 2012

The positive results of the US Federal Reserve’s (the Fed) stress tests are understood by legal experts to suggest US preparedness for the implementation of Basel III capital requirements. 
Fifteen of the largest 19 US bank holding companies were shown to have adequate capital under what is understood to have been the most stringent Fed stress test scenario to date. 
"My view is the Fed has essentially been working toward implementation of Basel III through the stress tests," said Arthur Wilmarth, a law professor specialising in bank regulation at The George Washington University Law School. "I think they are consciously using standards similar to Basel III." 
Basel III,...