Arab Today, arab today fed proposes higher capital rule for largest banks
Last Updated : GMT 14:37:28
Arab Today, arab today
Arab Today, arab today

Fed proposes higher capital rule for largest banks

Arab Today, arab today

Arab Today, arab today Fed proposes higher capital rule for largest banks

The US Federal Reserve is seen
Washington - AFP

US regulators plan to raise capital requirements for the largest banks above global standards to ensure they do not place the financial system at risk, a top central banker said Tuesday.
Daniel Tarullo, a member of the Federal Reserve board of governors, said it would set a capital surcharge for so-called too-big-to-fail banks which rely too much on short-term funding.
The surcharge would be more stringent than the capital standards already agreed internationally for "global systemically important banks" which, if they faltered, could damage the financial system.
"Reliance on this type of funding can leave firms vulnerable to runs that threaten the firm's solvency and impose externalities on the broader financial system," Tarullo told the US Senate banking committee.
Tarullo said the proposed surcharge goes beyond that decided by the Basel Committee on Banking Supervision, the international body which has sought to toughen bank capital standards worldwide.
"The financial crisis made clear that policymakers must devote significant attention to the potential threat to financial stability posed by our most systemic financial firms," Tarullo said.
The tougher surcharge is "designed to reduce the probability of failure of a GSIB to levels that are meaningfully below those for less systemically important firms."
He said regulators hope the new measure will discourage banks from relying on short-term capital for funding and generally to establish a more solid, less risky capital footprint, such as boosting more stable shareholder funds.
The measure could raise costs especially for JPMorgan Chase and Goldman Sachs, both of which rely more on short-term funding for capital needs thatn others.
Last week the Federal Reserve set new general capital surcharges for the largest banks -- those with more than $250 billion in consolidated assets -- based on the Basel standards but with some more stringent aspects and an accelerated implementation timeline.
Banks with more than $50 billion in assets were given a somewhat lower capital surcharge.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fed proposes higher capital rule for largest banks Arab Today, arab today fed proposes higher capital rule for largest banks

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday