global regulators agree on tougher basel iii bank rules
Last Updated : GMT 18:26:54
Arab Today, arab today
Arab Today, arab today

Global regulators agree on tougher Basel III bank rules

Arab Today, arab today

Arab Today, arab today Global regulators agree on tougher Basel III bank rules

By NATSUKO WAKI & CATHERINE BOSLEY | REUTERS Published: Sep 12, 2010 22:43 Updated: Sep 12, 2010 22:55 BASEL, Switzerland, Sept 12 : Global regulators, seeking to prevent any repeat of the international credit crisis, agreed on Sunday to force banks to more than triple the amount of top-quality capital which they must hold in reserve. The "Basel III" reforms will require banks to hold high-quality capital — known as "core Tier 1 capital," and consisting of equity or retained earnings — equivalent to at least 4.5 percent of their risk-bearing assets. That is up from just 2 percent under current rules. In addition, banks will have to build a new, separate "capital conservation buffer" consisting of common equity; the buffer will be worth 2.5 percent of assets. This will bring the total top-quality capital requirement to 7 percent. Agreement was reached at a meeting of central bank governors and top supervisors from 27 countries chaired by European Central Bank President Jean-Claude Trichet. "The agreements reached today are a fundamental strengthening of global capital standards," Trichet said in a statement. "Their contribution to long-term financial stability and growth will be substantial." Transition periods To ease the burden on banks, they will be given years to comply with the new requirements. The Tier 1 capital rule will take effect from January 2015, with the capital conservation buffer phased in between January 2016 and January 2019. Nevertheless, the Basel III rules are the biggest change to global bank regulation in decades. Regulators hope they will push banks toward less risky business strategies and ensure they have enough reserves to withstand financial shocks without needing taxpayer bailouts. In the wake of the global financial crisis, which was partly due to risky trading by banks, leaders of the Group of 20 leading countries called on regulators and central bankers in 2009 to work on tougher bank capital rules. The G20 leaders are set to endorse Sunday's deal when they meet in Seoul in November. Most of the world's top banks, which have to a large degree recovered from the financial crisis, are not expected to rush to raise funds in response to the new capital requirements. But there remain worries that banks in some countries face a long road to recovery, and that the Basel rules may cut the amount of money which banks can lend out to companies, slowing economic growth. Sources told Reuters on Friday that Deutsche Bank, Germany's biggest bank, might raise up to 9 billion euros ($11.4 billion) to bolster its balance sheet. From Arabnews.com

arabstoday
arabstoday

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*

global regulators agree on tougher basel iii bank rules global regulators agree on tougher basel iii bank rules

 



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*

global regulators agree on tougher basel iii bank rules global regulators agree on tougher basel iii bank rules

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
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