What Are The Main Features Of The Basel Iii And How Do They Differ From Basel Ii

Introduction The member states of the Group of twenty (G20) in 2010 certified Basel III framework which aimed at increasing the quality and quantity of capital that banks should have. Basel III replaced Basel I and II after they seemed to be collapsing under the pressure of the financial crisis in various countries (Gromova-Schneider Niziolek 2011).Advertising We will write a custom essay sample on What Are The Main Features Of The Basel Iii And How Do They Differ From Basel Ii specifically for you for only $16.05 $11/page Learn More Regulatory institutions are given the authority to have a large-scale-prudential approach in ensuring that Basel III re-establishes better quality liquidity and capital (Lyngen 2012). The purpose of this paper is to examine the key features of Basel III and how it varies from Basel II. Features of Basel III This section focuses on the main features of Basel III and their components which the committee has put forward to ena ble financial institutions to combat the financial crisis. The first feature is concerned with increasing the quality and quantity of capital (Walker 2011). Three stages will be used to advance the value, precision as well as the stability of Capital bases. The first stage involves efforts to stabilise ordinary shares in addition to increasing common shares and the earnings that are retained. The second stage involves harmonising capital instruments and the final tier is concerned with eliminating capital. The second feature is the establishment of additional buffers (Walker 2011).The committee proposes the following approaches to be used to reinforce the coverage of any threats to bank assets, counterparty credit risk and management of market integration. Lastly, capital requirements for counterparty must be reinforced in addition to raising the capital buffer that supports this coverage. The third feature of Basel III is the introduction of Leverage ratio as an added appraisal of Basel II risk based structures. The leverage ration is intended to establish a base to build up leverage in the banking industry, increase efforts to strengthen against model risk. And inaccurate measurement by supplementing the risk based measure with a simplified standard founded on gross exposures (Lyngen 2012). The Fourth feature is managing Counterparty risks by promoting countercyclical buffers. This is also proposed in Basel III as a strategy to advance the build up of capital buffers in appropriate periods which can be relied upon during periods of crisis.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Countercyclical would be advanced through the following means reducing surplus cyclicality of the least amount of capital prerequisite as well as advancing provisions that aim at capital stability in the future (Gromova-Schneider Niziolek 2011). The fourth element is also concerned with efforts to amass a vast amount of information and data over time which can be of help in determining the likelihood of defaulting as had been envisaged in Basel II. The banking industry must also provide support to banks to carry out stress tests so that they develop proper mechanisms to address crises. The Fifth feature involves improving liquidity. Here, the committee has advanced a world wide approach for internationally active banks to achieve the least standard of liquidity (Delahaye 2011). The committee held that banks internationally will be able to borrow more during periods of stress and crises. The Sixth feature deals with the SIFIs or the too big to fail institutions. The committee recognises the fact that these institutions are a threat to other banks in the banking industry (Walker 2011). As a result of this realisation, the committee links with the financial stability board which was also established by G20 to advance several strategies that can be used to address issues in the SIFIs. Such approaches include tighter large exposure restrictions, mandatory recovery and resolution plans. All these features are to be considered during the implementation of Basel III. The differences between Basel III and Basel II The main difference between Basel II and Basel III is the increase in the capital buffer by setting up the minimum quality and quantity of Capital which internationally active banks must have in their possession (Danila 2012). This is evident in the features discussed above since, they all intend to address the issue of ensuring that banks are stable and can survive during periods of stress or financial crises. Basel III expands on the explanations of fliers and provides a clear understanding of capital as an asset to guard against unforeseeable future conditions.Therefore, Basel III adopts these strategies and emphasises on them through the features discussed above to ensure banks have a sustained growth even during times of crises.Adv ertising We will write a custom essay sample on What Are The Main Features Of The Basel Iii And How Do They Differ From Basel Ii specifically for you for only $16.05 $11/page Learn More Conclusion Basel III is a framework that was developed to put in operation the components of Basel II in addition to helping banks expand the base for sustainability in the banking industry. This is a relevant step since banks have suffered in times of crises and such effects are always transferred to customers. Customers may move to more secure banks and this may have greater impact on the survival of the banks they leave. It is therefore appropriate for a framework to be developed to aid such banks against collapsing specifically during times of stress. This is what Basel III intends to do. References Danila, O 2012, ‘Impact and Limitations Deriving from Basel II within the Context of the Current Financial Crisis’, Theoretical Applied Economics, Little, B rown and Company, NY. Delahaye, B. P 2011, Basel III: Capital Adequacy and Liquidity After The Financial Crisis / Bernd P. Delahaye, World Scientific, London. Gromova-Schneider, A, Niziolek, C 2011, ‘The Road to Basel III — Quantitative Impact Study, the Basel III Framework and Implementation in the EU’, Financial Stability Report (Oesterreichische Nationalbank), Cengage Learning, UK. Lyngen, N 2012 ‘Basel III: Dynamics of State Implementation’, Harvard International Law Journal, vol. 53, pp 519. Web. Walker, G.A 2011, ‘Basel III market and regulatory compromise’, Banking Regulation, vol. 20 no. 1, pp. 53-69.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This essay on What Are The Main Features Of The Basel Iii And How Do They Differ From Basel Ii was written and submitted by user Deborah Vega to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

How to Pronounce the Name of Taiwanese Politician Tsai Ing-wen

How to Pronounce the Name of Taiwanese Politician Tsai Ing-wen In this article, we will look at how to pronounce the name of the president Taiwan, Tsai Ing-wen (è” ¡Ã¨â€¹ ±Ã¦â€"‡), which in Hanyu Pinyin would be written Ci YÄ «ngwà ©n. Since most students use Hanyu Pinyin for pronunciation, we  will henceforth use that, although the notes about pronunciation are of course relevant regardless of system. Ci YÄ «ngwà ©n was elected president of Taiwan on Jan. 16, 2016. And yes, her personal name means English, as in the language this article is written in. Below are some easy instructions if you just want to have a rough idea how to pronounce the name. Then we’ll go through a more detailed description, including analysis of common learner errors. Pronouncing Names in Chinese Pronouncing can be very hard if you havent studied the language; sometimes its hard, even if you have.  Ignoring or mispronouncing tones will just add to the confusion. These mistakes add up and often become so serious that a native speaker would fail to understand. Read more about how to pronounce Chinese names. Easy Instructions for Pronouncing Cai Yingwen Chinese names usually consist of three syllables, with the first being the family name and the last two the personal name. There are exceptions to this rule, but it holds true in many cases. Thus, there are three syllables we need to deal with. Cai - Pronounce as ts in hats plus eyeYing - Pronounce as Eng in EnglishWen - Pronounce as when If you want to have a go at the tones, they are falling, high-flat and rising respectively. Note: This pronunciation is not correct pronunciation in Mandarin (though it is reasonably close). It represents an attempt to write the pronunciation using English words. To really get it right, you need to learn some new sounds (see below). How to Actually Pronounce Cai Yingwen If you study Mandarin, you should never ever rely on English approximations like those above. Those are meant for people who dont intend to learn the language! You have to understand the orthography, i.e. how the letters relate to the sounds. There are many traps and pitfalls in Pinyin you have to be familiar with. Now, lets look at the three syllables in more detail, including common learner errors: Cai  (fourth tone) - Her family name is by far the hardest part of the name. c in Pinyin is an affricate, which means that it is a stop sound (a t-sound) followed by a fricative (an s-sound). I used ts in hats above, which is sort of okay, but will lead to a sound that is not aspirated enough. To get that right, you should add a considerable puff of air afterward. If you hold your hand a few inches from your mouth, you should feel the air hitting your hand. The final is okay and is pretty close to eye.Ying  (first tone) - As you have probably guessed already, this syllable was chosen to represent England and thereby English because they do sound quite similar. The i (which is spelt yi here) in Mandarin is pronounced with the tongue closer to the upper teeth than in English. Its as far up and forward you can go, basically. It can almost sound like a soft j at times. The final can have an optional short schwa (as in English the). To get the right -ng, let your jaw drop and your ton gue withdraw. Wen (second tone) - This syllable seldom clauses problem for learners once they sort the spelling (its uen but since its the beginning of the word, its spelt wen). It is actually very close to English when.  Its worth pointing out that some English dialects have an audible h, which should not be present here. It should also be noted that some native speakers of Mandarin reduce the final to sound more like un than en, but this is not the standardized way of pronouncing it. English when is closer. The are some variations for these sounds, but Cai Yingwen/Tsai Ing-wen (è” ¡Ã¨â€¹ ±Ã¦â€"‡) can be written like this in IPA: tsÊ °ai jiÅ‹ wÉ™n Conclusion Now you know how to pronounce Tsai Ing-wen (è” ¡Ã¨â€¹ ±Ã¦â€"‡). Did you find it hard? If you’re learning Mandarin, dont worry; there arent that many sounds. Once you’ve learned the most common ones, learning to pronounce words (and names) will become much easier!