he third consultative paper of the Basel Committee on Banking Supervision was released to market participants yesterday. The committee set a July 31 deadline for comments. The comment just released will be taken into account when the committee meets to add the finishing touches to its proposal for a new capital adequacy framework, which is expected by the end of this year. The final proposal is set to take effect towards the end of 2006.
Market sources warn that for industry players still playing a game of complacency, this may be the last chance to voice concerns regarding how regulation will affect securitizations going forward. “People need to speak even louder because this is very real and the deadline is moving right to schedule,” said one source. “There are still a number of issues that can have serious implications for certain areas of this industry.”