BSR C271

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Brand: BSR

BSR C271 refers to the Basel Committee on Banking Supervision's (BCBS) capital framework for credit risks arising from equity investments in funds. The acronym "C271" stands for the specific consultation paper published by the BCBS in 2011, which updated the capital requirements for banks' investments in unlisted funds. The framework requires banks to hold additional capital for these investments based on the level of risk, measured through a quantitative model or a simplified approach. The objective is to ensure that banks effectively manage the risks associated with such investments while maintaining adequate levels of capital to cover any potential losses. The BSR C271 is part of the broader capital framework for banking supervision developed by the BCBS to strengthen the resilience and safety of banks in the aftermath of the 2008 financial crisis.