Tier 1 capital represents a bank's core financial strength from regulator's perspective. Core capital includes common stock and disclosed reserves, plus non-redeemable preferred stock. Innovative instruments can comprise up to 15% of total Tier 1 capital
ESMA replaced CESR on January 1, 2011. Located in Paris, one of three European Supervisory Authorities. Created to address 2008 and 2010 financial crises
Basel III is the third of three Basel Accords for bank regulation. Developed in response to 2007-2008 financial crisis. Implementation began in major countries in 2012. Final implementation scheduled for July 1, 2025
Federal Reserve System consists of 12 regional banks and 24 branches. Banks operate within their own geographic areas called Districts. Each bank is led by president appointed by regional board of directors. Banks are overseen by independent Board of Governors
Basel III is an international banking regulation framework developed after 2007-2008 crisis. Created by 28 central banks in Basel, Switzerland to improve banking stability. Aims to strengthen banking system's ability to handle financial stress
LCR measures banks' ability to cover short-term obligations with highly liquid assets. Mandated by Basel Accords, developed by BCBS with 45 global financial center representatives. Banks must hold enough assets for 30 days to cover cash outflows