I do recall all the "creative bookkeeping" that went on. I figured the "market" had stalled out, or done a "correction" within the recent past. Hm, good beating once in a while used to be a "good" thing. It let the failing, fail with grace and the surviving keep on going. Ah, looking up your accords here, they read as rather interesting even for a dumb hick like me.
From BaseII accordingly to Wikipedia:
This seems to read as to being actuary basic operations policy. Ooops, no I know nothing regarding that, nothing at all. No, my grandmother never taught me to insure a basket of eggs, nope not once.
In sort I gather it to be saying in rough layman's terms, "keep your capital liquid and keep access, reporting clear". I can see that as being something to do as "best practice", it avoids anyone getting caught "with fingers in the cookie jar" as it were. It also allows for being fluid, adaptable to risk/s.
Basell III
Ah, then this goes on to further account for risk assessment. It increases the rate added to the rate that is normally held out against regulatory fluctuation. So the "money organization/entity" can be sure they are covered more fully in case of risks as credit keeps growing. So if a bank for example usually floats $10,000 let's keep it simple, 7% of that is held out as reserve to mitigate risks. That then means the bank comes "out of pocket" (which I know is false) $7,000 to protect that $10,000 credit line.
Yes indeed interesting stuff knowing these are not the "best practice" currently. Would that I be an evil person, tsk. Well I best naught think on this too much given my bit of a story starter here seems bent towards some form of villainous pretext involving robbery of some kind. Damn! I need to quit tunning into the Old Time Pulp E.S.P.N channel (Extra Sensory Perception Network). Seems like I get really great ideas for stories then read a news story involving some aspect of what I'm doing in a story. It's like "THEY" know, or maybe they are suggesting these plans to me? Hmmmm.
I'm impressed you looked it up and read it! Most traders wont,,we tried to warn them in 2007+2008,, they refused to learn,,, so we put their $$$ in our pockets.
I try a simple thought for newbies,,,,how long does it take you to climb a mountain? And how long does it take to fall off the mountain to the starting point,,, turns out gravity is very fast,,, much faster than climbing. Only 2%of the trading population has the skill to do very well in a collapse,,, the bulls are so addicted to cheap money they haven't learned any other skills...
So what happens when money really is free? Then there is nothing left to buy. Current griping about house prices at low rates for years is another problem,,, 20years ago we built a mcmansion on a lake $125k,,, that house sold again a couple years ago for near $1m,,, which is dumb because its time for repairs & upgrades. (+ The dam broke on the lake & emptied the lake into the neighboring lake!)
Edit,,, just to put another wrinkle in your brain & in the story,, everything you said is correct as ,, well lets call it "level#2",,,, you see level#1 is most important,,, the markets can float debt/loans endlessly,,, but the real problem is joe6pack's paycheck,,, he gets paid $1000,,, its usually digitally deposited,,, banks only figures J6P will only ever need $100 cash what happens when J6P needs $10,000 out of his savings that was funded from his paycheck? Well they make it hard,, make him sign forms,, make him beg. A couple weeks ago a bank in Utah didn't have any cash on hand,, staffer runs around collecting cash from neighbor banks,,, everything worked out,,, not the kind of stuff you see on news,,, more like info that trickles down. Basically,,, that was a "run on a bank". When people want their money in cash