Industry Article

The Basel III Framework and Digital Market Infrastructures

Former Basel Committee Secretary General, Bill Coen, discusses the Basel III Capital Framework, market infrastructure, crypto and digital assets with Baton's President, Jerome Kemp.

Now working with Baton as a Senior Advisor, Bill Coen was one of the principal architects of the Basel III Framework, a set of measures designed to strengthen the regulation, supervision and risk management of banks.

Asked by Jerome about the drivers of the Committee’s thinking post- Global Financial Crisis as it embarked upon the revision of the regulatory capital, which comprised the bulk of the Basel III reforms, Bill ‘s response is unequivocal. 

“Some of our thinking,” he says, “was driven by the glaring inadequacies of the existing framework. The reforms that we made were readily apparent and needed, like the amount and quality of capital.” 

“It’s imperative for regulators to keep up with the  times and to have a high awareness of growing risks and bank practices, as well as market developments.”
– Bill Coen

Bill describes some of the reforms as ‘searing lessons’ from the Global Financial Crisis, citing in particular the credit and operational risk frameworks as well as market risk, subsumed under ‘The Fundamental Review of the Trading Book (FRTB).’

Watch the Interview with Jerome Kemp & Bill Coen

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