BIS: Capital requirements for banks' equity investments in funds

This consultation sets out proposals that would revise the prudential treatment of banks' equity investments in funds. The Basel II framework outlines the current treatment of banks' equity investments in funds under the Standardised Approach and the Internal Ratings-Based (IRB) approaches for credit risk and BIS believes that the existing standard would benefit from further clarity in some areas and more appropriately reflect the risk of a fund's underlying investments and its leverage as well as helping to address risks associated with banks' interactions with shadow banking entities. Responses are required by 4 October 2013