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Report: Bank regulators reach agreement on Basel III capital requirements

By Anonymous

The details will be released later today, but here is an overview from the Financial Times: Regulators agree to reforms on bank capital

Basel III ... is expected to include a new minimum core tier one ratio for banks worldwide. ... The current minimum is 2 per cent.

[The] proposal [was] for a new minimum of 4½ per cent [with] an additional buffer of 2½ per cent ... Banks within the buffer zone would face restrictions on their ability to pay dividends and discretionary bonuses.
excerpt with permission

Here is an article from the WSJ: Bank Regulators Reach Deal on New Capital Rules

The details will be released later, and the agreement is expected to be approved in November. This will probably lead to more banks raising capital.

Full post as published by Calculated Risk on September 12, 2010 (boomark / email).