Basel 3: Impacts and Opportunities for Superannuation Funds
Basel 3 represents significant regulatory change, with profound impact on the global financial system, including Australia. This publication and related articles look at the likely impacts of Basel 3 and potential opportunities for Superannuation funds.
There are significant interconnections between the banking and superannuation segments of the Australian financial services industry. As such, any regulatory change in either segment is likely to have significant ramifications on the other, and potentially the financial services sector and the broader economy as a whole.
This publication reflects the following series of events that have served to shape the outlook for Basel 3 in the Australian Market:
- Submission of responses by the Australian Banker Association (ABA) and individual banks to draft standards on funding and liquidity previously published by the Australian Prudential Regulation Authority (APRA)
- APRA’s publication of both (i) draft and then (ii) final standards for the capital requirements associated with Counterparty Credit Risk on Derivatives.
- Finalisation of APRA standards for bank-wide (or macro level) capital requirements
- Finalisation of standards by some other regulators internationally –such as the Office of Superintendant for Financial Institutions (OSFI) in Canada
- Further emergence and clarity around other financial regulations – most notably the Dodd Frank Act.
NAB has been pleased to share our views and expectations around Basel 3 with many of our Financial Institutions clients and we have detected a greater level of understanding and preparation for its impacts throughout the market.
To find out more download the full publication:
For further insights in to the impact of Basel 3 on Superannuation funds NAB has published a series of articles in ASFA’s Superfunds magazine.
Download the Superfunds articles here:
- Basel 3: 101, Superfunds May 2012 (PDF 288KB) – looks at the origins of Basel 3, discusses some of its far-reaching impacts and highlights some of the impacts on different customer segments
- Basel 3: Global cash requirements, Superfunds July 2012 (PDF 371KB) – looks at new requirements on banks’ stable funding and liquidity
- Basel 3: Impacts fixed interest, Superfunds September 2012 (PDF 281KB) – looks at how the new standards for banks’ liquidity management will affect the markets for liquid fixed interest securities in Australia.
- Basel 3: Stimulus for corporate bonds, Novemebr 2012 (PDF 270KB) – looks at how banks’ stable funding requirements may impact funding of corporates and infrastructure projects, and create investment opportunities.
- Basel 3 implications, Superfunds February 2013 (PDF 319KB) – explores the specific impacts for derivatives transactions and what this means for superannuation funds’ risk management strategies.