Basel framework treats "capital" as a funding source that can absorb losses, rather than an owned asset assets are funded by liabilities and equity, so assets are not a funding source Tier 1 capital is the first-line of losses absorption for a bank so gold can't be in "Tier"

Illya Gerasymchuk 2025-07-02 20:43

🚨🏦 claims that gold is a Tier 1 asset under Basel III are FALSE: 1. gold is NOT a Tier capital under Basel - it’s on the liability, not asset side 2. gold had 0% risk weight since Basel I (no haircut) 3. gold is still NOT considered a high quality liquid asset (HQLA)