What are the penalties for noncompliance with Basel III?
Each nation (or group of nations, such as the European Union) that signs the Basel accords implements its own supervisory and enforcement system. Regulatory authorities can use the threat of fines or revoked licenses to encourage compliance with Basel standards. Under Basel III, if a bank fails to maintain the required capital conservation buffer, it could face restrictions on payments to executives and shareholders. Let us know what you think about the FAQ; email: Ed Scannell, Executive Editor.
