Related News
Banks need to bolster core capital
Source: Agencies |
September 21, 2012, Friday
|
Print Edition
Print Edition
THE world's biggest banks would have needed to find 374 billion euros (US$488 billion) if tough new capital rules to be phased in from January had been in place last year.
The finding, from the Basel Committee of global regulators, shows banks need to substantially lift their balance sheets.
The committee said yesterday that if the new rules, known as Basel III, had been in force at the end of December, the biggest banks would have needed 374 billion euros to hold core capital of 7 percent of assets, the target level for banks to meet when new rules come in.
The committee had estimated in April the top banks would have needed 486 billion euros if the rules had been in place at the end of June 2011.
The 102 biggest banks had an average capital ratio of 7.7 percent based on the new rules. But the capital of some of the big banks would have fallen below 4.5 percent, while many would have been under the 7 percent.
The finding, from the Basel Committee of global regulators, shows banks need to substantially lift their balance sheets.
The committee said yesterday that if the new rules, known as Basel III, had been in force at the end of December, the biggest banks would have needed 374 billion euros to hold core capital of 7 percent of assets, the target level for banks to meet when new rules come in.
The committee had estimated in April the top banks would have needed 486 billion euros if the rules had been in place at the end of June 2011.
The 102 biggest banks had an average capital ratio of 7.7 percent based on the new rules. But the capital of some of the big banks would have fallen below 4.5 percent, while many would have been under the 7 percent.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
