Loading ...BIS and BASEL iii
Good Morning Bill/Harvey,
I have learnt over many years not to pay any attention at all to anything any gold commentator has to say, unless his name on on my most trusted list. Just about all commentators are now in a feeding frenzy about the the significance of 29th March 2019 as the implementation date for section 96 of the BIS document referenced in yesterday’s MIDAS. Can anyone point out the date of 29th March 2019 in this document? I can’t sight this date, and the more I study the document, it appears to me that the suggested implementation date is 1st January 2022. All Basel111/BIS documentation is merely advisory, however, and in many places appears the rider “local regulators may……”
On the other hand, the Basel 111 framework “The Liquidity Coverage Ratio’ was promulgated in January 2013. and in paragraph 10 there is a phasing timetable with 100% fully phased implementation on 1st January 2019. From paragraph 45 onward there is a detailed discussion of what is encompassed by the term HQLA (high quality liquid assets), and gold is not specifically mentioned-not at all.
I would be more than grateful it someone could point out the authority for the specific date of 29th March 2019 as the implementation for the BASEL111 recommendations re vault gold. On another note let us examine the actual wording of section 96 of the Basel 111 document, Finalizing Post Crisis Reforms: a 0% risk weight will apply to gold bullion held at the bank, or held in another bank on an allocated basis to the extent that the gold bullion assets are backed by gold bullion liabilities.