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Stefan Ingves, chairman of the Basel Committee, on Thursday, when new documentation was released |
The Basel Committee’s oversight body – titled the group of central bank governors and heads of supervision – has agreed on an output floor for banks that use internal models to calculate credit risk.
It was perhaps the most contentious piece of the Basel III framework, and disagreements over what the output-floor level should be caused a year-long delay to its finalization.
The group agreed on a risk-weighted asset (RWA) floor of 72.5%
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