Basel III Measures May Heighten Repo Volume, Risks, Fitch
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Risks may rise in the U.S. market for borrowing and lending securities if tougher global bank regulation increases some types of trading of repurchase agreements, according to Fitch Ratings.
Capital and liquidity rules for banks, known as Basel III, were enacted by international regulators in 2010 in a move to help protect the world’s economy after the worst worldwide financial crisis in decades following the collapse of the U.S. subprime mortgage market. Basel III regulations, which need to be implemented by 2019, require some banks to hold more capital.