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Posts Tagged ‘Central bank’

Basel III rules could spell potholes, literally

Posted by Admin on April 24, 2011

http://in.finance.yahoo.com/news/Basel-III-rules-spell-reuters-1529902422.html

On Tuesday 19 April 2011, 9:40 PM

By Greg Roumeliotis, European Infrastructure Correspondent

AMSTERDAM (Reuters) – Rules designed to spare the world’s taxpayers from paying for a future financial crisis could also make it more difficult to build and replace infrastructure such as the roads they drive on.

The rules, known as Basel III, will weigh on the ability of banks to provide project finance loans on which cash-strapped governments and developers of power plants, pipelines and renewable energy such as wind farms rely to fund schemes.

“Banks have been the stalwart of privately financed projects. If long-term lending requires more capital to back it, it affects the enthusiasm of banks to provide it,” said Andrew Davison, senior vice president at credit rating agency Moody’s.

In Europe, this will hamper efforts to attract private funds into transport, energy and communication networks that are key to economic growth as well as providing jobs at a time when many European countries are struggling with unemployment.

Construction accounts for 7.1 percent of Europe`s total employment, according to the European Construction Industry Federation. The European Union (EU) says Europe’s infrastructure investment needs to 2020 could be up to 2 trillion euros.

Project finance loans are also big business for banks, having grown from a $110.8 billion global industry in 2000 to $208.1 billion in 2010, according to data compiled by Thomson Reuters Project Finance International.

This rise, driven by the private sector’s increasing participation in the funding of infrastructure, is at risk under Basel III, which will make project finance loans scarcer and more expensive due to the way they are accounted for.

“There is an expectation that the volume of project finance loans will drop very significantly over the coming years under Basel III,” said Timothy Stone, chairman of the global infrastructure and projects group at accounting firm KPMG.

Under Basel III, a short-term liquidity buffer, known as the liquidity coverage ratio, will include liquid forms of debt such as government bonds and top-notch corporate paper, but not project finance loans, seen as among the most illiquid.

A second ratio, the net stable funding ratio, makes the provision of long-term debt such as project finance more expensive for banks by requiring them to match their liabilities with their assets in terms of funding.

While not all banks will abandon project finance as a result, their business will be severely affected, said Noburu Kato, EMEA head of structured finance at Sumitomo Mitsui Banking Corporation.

“I believe project finance by banks will continue because there is an increasing need for it, from governments that need to invest in infrastructure and companies that do not want to use their balance sheet. But costs will increase,” Kato said.

Although Basel III is to be implemented between 2013 and 2018, bankers say the impact on project finance will be felt before the rules kick in as banks compete to show investors they are well positioned for the new capital requirements.

“I would expect most of the impact of Basel III on project finance to be priced in by 2014,” said KPMG’s Stone.

In the European Union (EU), project finance accounts for slightly less than ten percent of total infrastructure finance, according to a 2010 European Investment Bank study. The European Commission is exploring initiatives such as backing project bonds to compensate for any drop in project finance loans.

Bonds made up only 9 percent of global project finance activity in 2010 according to Project Finance International. The market for project bonds suffered after the woes of monolines — companies that insure bonds — in the credit crisis of 2007.

But some financiers see opportunities to create new instruments to replace the monolines that can lift a project bond’s credit rating from the BBB range into the A category, attracting a wide poll of institutional investors.

Such a market is still in its infancy but has the potential to fill the gap left by the Basel III-hit project finance industry, its advocates say. Last year, British insurer Aviva partnered with Hadrian’s Wall Capital, an advisory firm, to create a debt fund dedicated to such instruments.

“Our form of credit enhancement can help the project finance bond market take off. We are looking to raise approximately 1 billion pounds with our fund and with that we should be able to provide around 10 billion pounds in financing,” said Hadrian’s Wall Capital Chief Executive Marc Bajer.

(Editing by David Cowell)

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Comments – Prof S P Garg Wed 20 Apr 2011 12:16 AM EDT Report Abuse

Basel II requirements and their strict compliance has protected the major banks and financial institutions worldwide.International Bank for Settlement (IBS) is doing a remarkablec job by way of stipulating the necessary capital requirements ina very prudent manner.The developing countries ,in the initial years might have faced the difficulties in its implementation but results are praiseworthy. The stringent measures must go on and Basel III is a welcome step.
Infrastructure projects and other long term investments would require higher capital requirements but for maintaining the robust health of the banks it is needed.The Central banking system of each country would take necessary steps to augument their caital is these activities have to be pushed in a big way.Not only this, there is a long time gap in implementation and during this period, each institution is needed to take strong steps to boost their capital needs to cater the needs of these sectors.As such, there should be any apprehension that development process would suffer dur to Basel III.Robustness of the financial institutions is to be maintained.
In India, the regulatory framework is so strong which has given a big support to the banks in comliance matters, governance and reporting system.The RBI has shown the path to other countries,Regulatory bodies and central banks that how to grow even in difficult times alongwith maintaining strong standards of compliance.

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Observations II

Posted by Admin on April 14, 2011

Tuesday, April 5th, 2011

Greetings: We return this day with more observations of your world and projections of what is to come. We begin with those humans who live under the yoke of tyranny or are a part of the physical oppression of others. They know quite well the role of physical force. It is the threat or the actual application of physical punishment, torture, or deprivation that keeps such families, clans, societies, and countries organized for the benefit of their tyrants. It is an age-old ways of controlling humans on your planet. Fears of physical harm force all into rigid structures.

Your so-call advanced societies have a much more subtle, but equally effective means of control; it is called money. Those who have it exercise various means of domination over those who do not. The elites, who have vast wealth, exercise absolute domination over the rest of such societies.

The illuminati, amassing wealth for hundreds of years, have played a largely behind the scenes role in controlling money. In the United States they created institutions such as the Federal Reserve to lend dollars to the government and in turn to the people of the U.S. Their amassed trillions of dollars insulates them from currency fluctuations, for they will always have more money than anyone else, will always hold more land, own more corporations, and control more banking institutions.

Those who have acquired wealth by playing the money game either through their inventive skills or through climbing to the top of the corporate or banking ladder have sold out to the money controllers. Oh they may be most generous in their philanthropy, but they do not give away enough money to make them one of the middle class, or even one of the lesser wealthy. Grand movies are made about the super rich. Comedies are made about the middle class and the poor.

Money invades the life of all in the developed economies. Money controls all aspects of people’s lives. You are told how much money you can borrow from a bank. You are told how much money you will pay in taxes. You are told how much money an item will cost at the super market. Money has become so widely accepted that few stop to question how it dominates their lives.

On the new Earth there will be no need to earn money. We know this is hard to conceive of, but that is the way it will be. Banks create money to lend. The Federal Reserve creates money to lend to the U.S. government. All of this money is created from nothing. If then money can be created from nothing and accepted by all as something of value, why not create money enough for everyone? This is a glimpse of what your future holds.

It is the affect of these controlling structures on individuals that we now wish to address. If you are living under the domination of a tyrant who uses physical force to control you, you are very aware of that domination. Your every movement is monitored and proscribed by soldiers or police. Your freedoms are few. If you choose, you may become part of the regime of the tyrant, and dominate others to achieve a better life for yourself and your family. But you will pay a terrific cost by betraying who you really are: a majestic soul who has incarnated to experience life in the density of Earth. The tyrant may just as well be a religious leader, still you are selling out part of who you are if you align with his or her dominating ways, if you become part of the tyrant’s clan, a follower, or a servant to his or her cause. And conscious people will look upon you with distain because they know that you have sold out.

In the case of a society that is ruled by money, a similar situation exists. Here people believe they are part of a marvelous scheme in which they may climb the ladder to financial success by playing according to the rules. Here they sell out by making the accumulation and use of money their goal. Here the tyrant is less visible, the rules of the game more obscure, and the rewards seemingly less tainted — from a very young age almost everyone is convinced that they want to be rich, and lead a wonderful life that only wealth can bring. So with a society structured around money as its controlling factor, everyone is led to believe that having money, being a part of the system, and selling out to the money tyrant is a good thing. The media glorifies those who are rich. Products and services are offered to those who have the money to pay. Neighborhoods are delineated by those who have money and those who do not. Whereas the selling out to the physical tyrant was an obvious abandonment of your friends and family, with money as the tyrant everyone is selling out to some degree, so there is no judgment by others because everyone is playing in the same game. However, those who make money and what it buys their goal are abandoning their true nature to a tyrant just a surely as those who become part of a physical tyrant’s favored few.

The energies of change are now impacting all on your world — land, sea, air, animals, fish, and most particularly, humans — dissolving the old to make way for the new. Recently there have been three of these energies: Energies of Truth, Energies of Freedom, and Energies of Oneness. From the first of these has arisen the unveiling of the corruption and deceit from governments, corporations, bankers, and religions. Julian Assange and others involved with whistle blowing are driven by the Energies of Truth. Reactions of people to the Energies of Truth are seen in the elite as they seek to label anyone who is not a part of their scheme a terrorist, as they seek to undermine what is beneficial for the many in favor of what benefits the few. The results of the Energies of Truth can be seen in payments by the Catholic Church for abuses by priests.

The Energies of Freedom are entering the lives of all humans. It is not just the courageous people in Tunisia, Egypt, Libya, and other Middle East countries. It is the actions of wives who seek freedom from abusive husbands, children who seek freedom from domineering parents, and workers who seek freedom from domination by corporations.

The Energies of Oneness are the most recent. They are causing all to take a second look at who are their brothers and sisters. These energies are stirring a gratitude for Earth and all that she has provided. Oneness is exhibited by those who see poverty and hunger in a new light, see that the unfortunate are truly no different than their own family. Again the elites, the wealthy, the comfortable, and all who have used their money, power, and status to establish themselves as better than lesser humans are resisting this energy, and engaging in class warfare.

The energies of change are impacting all on Earth. This is not a temporary condition; Earth-humans will NOT return to the old ways of seeing and believing. The waves of change are seeping over all. There is no going back. All are sensing these energies of change, whether they understand them or not.

Those of you who are reading these words, and comprehend the magnitude of the changes, would do well to search within to determine how you are reacting. Are you going to fear, or embracing the light? Many of you will soon realize that you are the light bearers who others will seek out to gain understanding, and to inquire as to what they should do. Do not hide your light; let it shine by your example. You have much to give; decide how you will assist the transformation of your human sisters and brothers.

This all resolves itself then into the impact on individual humans and how they react to the many energies and changes. Do they see the changes and say, “Indeed this is the time of great change. We welcome this.” Or do they say, “I will resist these changes because I like things they way they are.” Or do they see the changes and go into fear for their personal safety? Or do they choose to ignore the changes, hoping all will return to “normal” in a short while? The choice is yours, humans of Earth, choose well for your choices impact all in the universe.

Now let us turn to those us who watch and wait. We do this because we may not interfere with your personal choices, your individual free will. We may not come to your assistance until you request it. In many of the recent “natural” disasters, the countries not affected came to the assistance of those in distress. The recent earthquake in Japan saw countries and organizations from around the world offering assistance. It was the choice of the Japanese people to ask for and accept this assistance.

So will be the case with your sisters and brothers from the stars. There will come a time in the near future when your entire world will be in a state of distress. There will be no other countries or organizations to come to the assistance of those requesting help. It is at that moment if you ask for our assistance that we will answer your call. We, your brothers and sisters from the stars, will deliver much-needed assistance — in much the same way that assistance has been provided to the people of Japan.

Despite our best efforts, we will not be able to assist every individual in a timely manner, nor will we impose ourselves on those who do not wish our assistance, nor do we wish to circumvent your opportunities to assist a neighbor or family member. Just as has been the case in Japan, people have assisted each other with food, water, and shelter. When your entire world is in distress, you too will be called upon to assist each other and we have no doubt that you will respond.

So it is wise to store some food and water and to secure shelter first for yourselves, then for your family members, friends, and neighbors. The period of distress will last for several months, until the necessities can be restored. Until electricity can once again be counted on to light your homes. Plan for such a time.

You will not be thrown back into the primitive state of your ancestors. At the same time, your major cities will become unsustainable. It is from the countryside and in smaller villages that the civilization of Earth will be reconstructed. Here we of the stars can be most effective in rendering assistance. So we say to you this day, plan well for the transformation is upon you.

Some have visualized the pending changes as the separation of the Earth into two parts. Others have seen a second Earth make an appearance and humans being transported to that sphere. In your earlier communications you foresaw such an event, Mark. What is more accurate is a separation of the Earth into different densities based on vibration.

Those who are of the 3rd vibration will experience the physical changes that Earth is projected to undergo, including earthquakes, volcanoes, and tsunamis. These will change the face of the planet, water will intrude over land, the poles will shift, and the crust of the Earth will rotate. The net result of this will be a more moderate climate and the greening of the deserts. It will take some time for the Earth to adjust to all that is new. The animals and fish will adjust quite rapidly; it is the humans who remain on the Earth of a higher vibration who will have the most difficult adjustments. Your need for shelter, food, and water will not completely disappear.

Those of you who are vibrating at a higher frequency will not experience the trauma as severely as those who are vibrating at a lower frequency. You will rise above much of the trauma, but you will see it nonetheless. Thus you will exist alongside those of the lower vibrations. You will walk among them but they will barely see you. In some cases you will be able to reach out to assist them. Entire communities will be distinguished by their combined frequencies: Individuals of the higher frequencies blending with those of the somewhat lower frequencies.

Those of you who have achieved a higher frequency will be able to see us, your sisters and brothers of the stars, as we come to assist your transition. Those of the lower frequencies will not see our assistance but they will benefit from it nonetheless.

It has always been that way. Over the centuries, we have worked with certain individuals to insure the progress of humanity. It has been seen as innovations in technology, government, and better ways to experience one another. We have been the helping hand behind the discovery of electricity and harnessing it for lighting. Many of our suggested innovations have been corrupted by those who would keep such innovations for themselves or use them to induce fear into the population, but we have seen enough good come from our urgings that we have continued.

Now it is your turn to provide assistance to those of a lower vibration. From your vantage point, you will assist the continued evolution of mankind on Earth. The greater advantage you have is that you will possess human bodies exactly like those of the humans of the lower frequencies; they will relate to you more readily than they have to us who have seemed strange. You are to be the Caretakers, not only of the Earth, but also of your human brothers and sisters.

This has not been done before: Humans who are of a slightly higher frequency assisting those of a slightly lower vibration. All who remain on Earth will slip into what you are calling higher dimensions, for none who are addicted to fear, hate, anger, war, or violence will survive what is coming. (Their dense energies will not enable them to move upward.) Those who consciously put aside lower vibrations will shift into a higher dimension and journey to the new Earth. Those of you who are vibrating at a higher frequency yet will interact with them as guides, mentors, and elders. It will be a glorious time when the new humans of Earth can vibrate at the frequencies of the animals and plants, can see the oneness of all, can relax into the beauty of Earth, and most importantly can assist each other in love and light.

The time of great change is upon you. Listen well to the various communications, and embrace the higher energies. Each must find his or her own way of being, for both your evolution and your uniqueness are valued.

As we currently see the situation, there will be continued earthquakes, volcanic eruptions, tsunamis, and severe weather. How impacting each will be on humans is determined by a number of factors: Earth’s desire to cleanse herself in a particular area. The fears held by the human residents of that area. The illuminati’s use of HAARP, and other methods, to increase the severity of these events.

As we have told you before, we can see the Earth in the future. We are looking at a beautiful new Earth through the perspective of our higher frequency (where there is no time and we can see without distortions), so we see her somewhat differently than do you who are looking through a 3rd dimension vibration. Earth is much the same as today (mountains, oceans, etc.); it is that we see her differently from our lighter perspectives (as will you when you achieve faster vibrations).

Let us remind you once again that your individual future is determined by your individual frequency of vibration. You have been told by various lightworkers, and by those of us from the higher vibrations, of several methods to increase your vibration. If you have not already done so, it is not too late to undertake this process. Staying in a higher vibration means avoiding fear both now and when the climax of the transformation takes place. Much like the vibration of a tuning fork that can be quelled by holding it against your hand, so can fear dampen your vibration.

Now is the time to avoid anything that reduces your ability to vibrate at the highest possible level. Practice living in higher vibration daily. Practice it with your eyes open, practice in your home, in your place of work, and as you walk in nature. Practice it as you walk tall among those who are fearful. Practice it so that others who see you notice you are oblivious to the fears of 3rd dimensional surroundings, and practice it so that others inquire of you how also to do that.

We who exist in the density without time can assure you that Earth will continue. We can assure you that humans of Earth will continue, albeit at a higher vibration. Moreover we can assure you that everything will be quite different on the new Earth — that the new Earth will be a planet of love, light, and Oneness. We have seen the brilliant new Earth as she shines like a beacon for all in the universe. And you the humans who then reside upon her will be honored as those who transformed themselves from a density of fear into beings of love and light. And there will be great joy among all in the universe as these momentous events are realized. What you do for yourselves and each other reverberates through the universe.

Once again we are pleased to communicate with you and look forward to more opportunities. We hold you in unconditional love. Until next time, I am Adrial, a celestial of this universe, I am Bren-Ton, I am Justine, and I am Moraine, all from Andromeda, and I am Zepher of the Pleiades.

_________________________________________________________

DECLARATIONS

Read archived messages from Adrial, Bren-Ton, Justine, Moraine, and others at this site or by referring to:http://www.cosmicparadigm.com/Marks_Corner/

For observations by Mark Kimmel, go to: http://www.cosmicparadigm.com/Marks_Corner/

You may make copies of this message and distribute in any media as long as you change nothing, credit the author, and include the web address.

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Global bankers meet in Basel for reform

Posted by Admin on September 13, 2010

By Brooke Masters and Patrick Jenkins, FT.com
September 10, 2010 — Updated 0113 GMT (0913 HKT)
Death of the Feds
(FT) — Banking supervisors and central bankers from 27 countries will gather in Basel, Switzerland, this weekend to adopt what is set to be the most important regulatory reform package since the financial crisis, even as German, US and other officials continue to jockey over some provisions.
The officials overseeing the Basel Committee on Banking Supervision, the global rule-making body, are expected to set minimum requirements for the amount of top quality capital banks must hold against future losses and announce a timetable for reaching the standards. The figures are set to determine the shape, stability and profitability of global banking for years to come.
Ben Bernanke, chairman of the US Federal Reserve, Mervyn King, governor of the Bank of England, and Jean-Claude Trichet, president of the European Central Bank, are among those meeting on Sunday to thrash out the final details of the banking reform package known as Basel III.
A large group of countries has coalesced round a plan to require banks to hold core tier one capital – essentially equity and retained profits – equal to 5 per cent of their risk-weighted assets, compared with the current requirement of 2 per cent. In a new measure, banks would also have to hold a buffer of additional capital equal to 2-3 per cent of assets, meaning banks that fall below a core tier one ratio of at least 7-8 per cent or face restrictions on their ability to pay dividends and bonuses.
However, some countries have so far refused to sign up and are still pushing for totals as low as 4 per cent or as high as 10 per cent, including the buffer, people familiar with the talks said. Germany has been particularly vocal in its concerns about setting the ratio too high. “It’s not finished,” said one regulator.
The exact numbers could also shift as part of the negotiations over the timetable. US officials would like the minimums in place in 2012 with the buffers a few years later, while a German central banker said this week he expected the minimums and buffers to phase in over five to 10 years starting in 2013. Some participants believe a longer timetable may be the price of tougher numbers.
Analysts believe the outcome may also turn on the issue of so-called contingent convertible capital, nicknamed “cocos”. These instruments, essentially bonds that only convert into equity under a stressed scenario, do not count towards the core tier one minimum, but the French have been arguing that they should be usable to meet the buffer capital requirements. This apparently technical issue could radically change the effect of the regime. If the buffer can be funded with cheaper cocos, the result would be far less severe.
One person close to the process said the Basel group was unlikely to allow exceptions for smaller banks, as some in Germany had hoped. The group will insist the “entire world” be subjected to “a totally level playing field with absolutely no exceptions”, the person said.
Sunday’s meeting may well have to defer decisions on the size of two other planned parts of the package: surcharges for extra-large banks and a second buffer designed to counter the economic cycle.
The influence of the committee’s decisions could be profound. If it sets requirements too low, another banking crisis could result; too high and the world economy could struggle with a lack of credit.
James Gorman, Morgan Stanley’s chief executive, said the Basel reforms were “the single most important reforms that will be made coming out of this financial crisis”.

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