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Basel rules eased in victory for the banks 

January 15, 2014
European CEO

A bank lobby has succeeded in pushing for an easing of the capital requirements set out in Basel III.

After tough negotiations, it was announced yesterday that regulators have compromised on the controversial rules designed to ease banks’ over reliance on debt, as set out by the Basel III accord.

Banks have long since advocated that the debt ration mandated in Basel III was too harsh, and that it would have been nigh on impossible for institutions to raise the amount of capital needed to meet the requirements. Therefore it should be considered a victory for the bank lobby that concessions were finally offered by central bankers and supervisory authorities.

The leverage ration is a crucial mandate of Basel III and its significant watering down is another in a long line of compromises authorities have made that already.

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