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Basel watchdog curbs bank capital discretion for supervisors 

April 22, 2015

Huw Jones, Reuters

Global regulators have jettisoned a string of national "waivers" from bank capital rules to help restore credibility in benchmark ratios published by lenders.

Regulators have found wide variations in the amount of capital banks hold against a similar set of loans, denting investor confidence in published capital ratios and hit valuations in the sector.

The Basel Committee of banking supervisors from nearly 30 countries published six examples of capital requirements on Tuesday where national regulators will no longer have discretion over whether to apply them or not.

"National discretion allows countries to adapt the Basel standards to reflect differences in local financial systems," the committee said in a statement on Tuesday.

"However, the use of national discretions can also impair comparability across jurisdictions and increase variability in risk-weighted assets."

Read more: Reuters

 
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