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Tougher rules for Basel bank

<strong>BASEL, SWITZERLAND.</strong> Global regulators, seeking to prevent anyrepeat of the international credit crisis, agreed yesterday to forcebanks to more than triple the amount of top-quality capital which theymust hold in reserve.

BASEL, SWITZERLAND. Global regulators, seeking to prevent any repeat of the international credit crisis, agreed yesterday 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.

 
 
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