For example, Tier 1 common equity capital ratios at the largest U.S. banks have nearly doubled since 2007.9 In addition, new requirements address the specific interactions that banks have with CCPs and derivatives markets in order to promote both the use of central clearing and strong CCP risk management.
Under Basel III, capital requirements for bank exposures to a CCP are sensitive to the risk management standards applied by the CCP. These requirements acknowledge that CCPs that adhere to the PFMIs present lower risks to their members.