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26 July 2017 16:43 (South Africa)

Regulators agree on stricter rules for Basel III

  • Andy Rice
    andy rice
    Andy Rice

    Andy Rice is a founding partner of Yellowwood Future Architects, a marketing strategy consultancy. In his other lives, he is the southern hemisphere's only supporter of Cambridge United Football Club, and was once upon a time the South African National Spoofing Champion. He has played football at Wembley and cricket at Lord's within the same weekend, but troubled the scorer on neither occasion. Things could only go up from here.

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

  • Andy Rice
    andy rice
    Andy Rice

    Andy Rice is a founding partner of Yellowwood Future Architects, a marketing strategy consultancy. In his other lives, he is the southern hemisphere's only supporter of Cambridge United Football Club, and was once upon a time the South African National Spoofing Champion. He has played football at Wembley and cricket at Lord's within the same weekend, but troubled the scorer on neither occasion. Things could only go up from here.

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