Hong Kong began to realize the new standards of Basel III

Hong Kong started to implement the first stage of the Basel III. With this purpose in the official journal of Hong Kong were published special Banking Rules 2012 for the local financial organizations.

Basel III - a document adopted by the Basel Committee on Banking Supervision, containing the methodical recommendations in the field of banking regulation and approved in 2010-2011. Basel III introduces new standards for capital and liquidity. His main goal is to improve the quality of risk management in the banking business, which, in turn, will strengthen the stability of the financial system as a whole.

According to the above Rules, as well as the program itself Basel III, are determined higher requirements for the lower-limit dimension of the equity tier, namely, equity tier adequacy ratio: increases from 4% to 6%. In addition, sets new standards of liquidity, as well as leverage (additional 3% do not risk-based capital ratio of the borrowed funds, designed to support the above measures). As regards the minimum level of the common capital adequacy ratio, it remains the same - 8%.

Representatives of the authorized bodies of Hong Kong believe that this program will have a favorable impact on the financial system of Hong Kong. "The implementation of the requirements of the Basel III will help increase the stability of the banking system of Hong Kong, strengthening the status of the main international banking and Finance center", - said the
press-Secretary for Financial Services and the Treasury Bureau.

The representative of the Hong Kong Monetary Authority added that «local authorized institutions are generally well capitalized with an average capital adequacy ratio of 15.9%. In view of this, they must adapt well to the new requirements».

On the basis: http://www.info.gov.hk/gia/general/201210/17/P201210170417.htm.

Sometimes it is useful to draw an attention to the origins of certain events or phenomena, in order to better understand what is happening now. After a brief research of the Basel Committee on Banking Supervision, which gave recommendations, called the "Basel III", we learn that it operates at the Bank for International Settlements.

What is it, this Bank? On the one hand, judging by the name, he is engaged in some sort of international settlements, on the other hand only specialists know it. Simple inhabitant is better
informed about the IMF's work, than on the BIS.

Go ahead and find out that the Bank for International Settlements was organized in 1930, as a result of the agreement of the Central banks of the countries-winners in the First World War, in order to organize the payment of reparations by Germany. Namely, the Central Banks of: Belgium, Great Britain, Italy, France and, of course - defeated Germany. Then it turns out that the BIS was founded on the basis of Jung’s plan of reparations. And Owen D. Jung held the post of the head of «General electric», the post at the Federal Reserve Bank and post in the «General motors» of Morgan. - All of this, the structures of the United States of America.
What is characteristic, the BIS was organized on the territory of neutral Switzerland, which was not involved in the war.

See what happens: in the center of Europe, in a neutral country, that is the fiscal Paradise, according to the plan of the USA, was created the structure, which extorts money from Germany.
According to this plan in 1988, Germany was to pay 112 «Golden billion»!!! Until 1966 payments were planned at the level of: 2 billion a year, after 1966: 1.6-1.7 billion.

One piquant detail: during the Second World War, in the BIS did not only stop the movement of funds, but also continued the cooperation between the Directors of the CB! It means that the Central banks of fascist Italy and Germany continued to work with the Central banks of Great Britain, the USA and France! Then the United States supported the banking secrecy of Switzerland and trusted to keep its money in this country. Out of the depths of the past move a little closer to the present.

In 1974, when the Basel Committee on Banking Supervision at BIS was organized by Directors of the Central banks of the G10. The aim was an introduction of unified standards in the sphere
of banking regulation. At the current moment (2012) the BCBS includes representatives from:

1. Argentina,
2. Australia,
3. Belgium,
4. Brazil,
5. Great Britain,
6. Germany,
7. Hong Kong,
8. India,
9. Indonesia,
10. Spain,
11. Italy,
12. Canada,
13. China,
14. Luxembourg,
15. Mexico,
16. The Netherlands,
17. Russia,
18. Saudi Arabia,
19. Singapore,
20. The United States,
21. Turkey,
22. France,
23. Sweden,
24. Switzerland,
25. South Africa,
26. South Korea,
27. Japan

82 years have passed since 1930. Only memories remained on banking secrecy. The USA suppressed the global banking system and no longer needs the neutrality of Switzerland. Banks around the world perform the recommendations of the structure, which was created to extract money from the defeated country.

What conclusions can be made on the basis of this short journey from the past to the present?

The dollar collapses, only if the United States decides to collapse it. This is unlikely to happen, because it is the only world currency, which allows to collect profits from all over the world.
And if there is confidence in the dollar, then the entire world financial tools, including off-shore jurisdictions, will work. And the introduction of the recommendations of the Basel III in banks of Hong Kong is another confirmation of this fact.

For customers, who use the Hong Kong’s companies and have accounts in Hong Kong banks, everything will remain the same. Plus - there is a hope, that the whole system will become a little
more stable and balanced.