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Regulators ease new bank rule on leverage to aid economy 

January 14, 2014
Huw Jones, Reuters

Global banking regulators agreed on Sunday to ease the way a new rule, meant to rein in risky balance sheets from 2018, is compiled to try to avoid crimping financing for the world's economy.

Sunday's decisions were the latest sign of how regulators have become more willing to accommodate banks as the focus switches to helping economies recover.

The relief to lenders may, however, be temporary as the regulators signaled there is still no agreement on the final level of the new leverage ratio, which measures how much capital a bank must hold against its loans and other assets.

The ratio was initially set at 3 percent of capital but supervisors from the United States, Britain and elsewhere are pushing for a higher proportion, a person familiar with the debate said.

Read more: Reuters


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