Regulators agree on stricter rules for Basel III
In a meeting on Sunday banking regulators reached agreement on setting down tougher capital reserve requirements. Under the Basel III accord, banks will have to hold capital reserves equally 7% of their risk-bearing assets. At the moment the amount they have to hold is just 2%. The new rules will be implemented piece meal, over a period from 2015 to 2019. Recently bankers have been more used to carrots than sticks, but things are changing: if banks flout the regulations, they will be penalised in terms of the bonuses and dividends they are allowed to issue. Read more: Reuters
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