Arab Today, arab today global regulators agree on tougher basel iii bank rules
Last Updated : GMT 11:19:08
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

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 global regulators agree on tougher basel iii bank rules Arab Today, arab today global regulators agree on tougher basel iii bank rules

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
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