Mr. Elgar: No, but to use explicit examples when looking at some of the liquidity guidelines and some that are coming out of Basel, the liquidity adequacy, the NSFR, the stable funding ratios, these are international standards that OSFI is adopting as part of the international environment, brings it back for dialogue to the banks who create liquidity guidelines for Canada based on discussions and consultation with industry about wh ...[+++]at makes sense.

22. Stresses that the reports of the Committee on Economic and Monetary Affairs on CRD IV , currently being discussed with the Council, represent an important step in tackling shadow banking in a positive way by imposing capital treatment of liquidity lines to structured investment vehicles and conduits, by setting a large exposure limit (25% of own funds) for all unregulated entities, which will help in nudging banks towards the Net stable funding ratio, and by r ...[+++]ecognising the higher risk, relative to regulated and non-financial entities, of exposures to such entities in the prudential provisions for liquidity risks;

The so-called Basel 3 agreement, concluded by the Basel Committee on Banking Supervision, strengthens bank capital requirements, introduces a mandatory capital conservation buffer and a discretionary countercyclical buffer, and sets new regulatory requirements for bank liquidity and bank leverage.

The so-called Basel 3 agreement, concluded by the Basel Committee on Banking Supervision, strengthens bank capital requirements, introduces a mandatory capital conservation buffer and a discretionary countercyclical buffer, and foresees a framework for new regulatory requirements on liquidity and leverage.

The so-called Basel III agreement, concluded by the Basel Committee on Banking Supervision, strengthens bank capital requirements and introduces new regulatory requirements on bank liquidity and bank leverage.

In concrete terms, it involves introducing measures which should contribute to the greater financial stability of the banking sector, and to reducing the probability of another crisis, focusing on the following five areas: the quality of capital (increasing the quality of bank capital is undoubtedly desirable), stricter liquidity standards (the liquidity risk was shown to be significant during the crisis), countercyclical measures (the creation of additional banking capital in good times should limit excessive credit growth and consequent creation of price bubbles, such as, for example, in Spain), the introduction of a ...[+++] leverage ratio (this new indicator should contribute to the greater stability of banks, but it should include not only financial items contained in the bank’s balance sheet, but also off-balance sheet items, such as derivatives and the contingent liabilities of the bank) and, last but not least, the creation of a central counterparty for the settlement of OTC transactions, particularly in relation to greater transparency in derivatives.