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Banks Get New Restraints

Wall Street Journal Original article ›

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To get the agreement of the 27 countries engaged in the talks to set new banking rules, the new Basel III banking rules are being phased in over a protracted period. Some changes go into effect in 2013, but others will be put into effect by 2019. The focus on the new rules is how much capital, or "common equity" banks will be required to hold as a cushion to absorb losses in a crisis like that of 2008. Large banks will be required to hold 7% of their assets in common equity. By 2015, banks will have to begin building a 2.5% buffer of capital, which must be in place fully by 2019. No action was taken on issues such as requirements for banks to have access to ample liquidity, what systemically important banks should hold in capital, and establishing a counter cyclical capital buffer.

Banking Rules under Basel III and the global banking system

01/21/2010

Grouped Articles

The Battle Over Bank Rules at Basel III

BusinessWeek 05/27/2010

Banks Get New Restraints

Wall Street Journal 09/13/2010

Basel Rules Unlikely to Force Capital Raising

Wall Street Journal 09/14/2010

No Quick Dividend From Basel

Wall Street Journal 09/14/2010

After Basel, the Banks Are Not Safer

BusinessWeek 09/15/2010

G-20 Endorses New Reserve Rules for Banks

New York Times 11/12/2010

Fears that Basel III and European Banking Authority E.U. Stress Tests may not adequately reflect the risks on banks balance sheets.

01/21/2010

The situation after bailout of Irish banks in November 2010 by the EU. The Irish banks had passed European stress tests. Portuguese and Spanish banks may face a similar situation.

Grouped Articles

Few Banks Fail EU Exams

Wall Street Journal 07/16/2011

Europe Fails Another Stress Test

Wall Street Journal 07/16/2011

The Battle Over Bank Rules at Basel III

BusinessWeek 05/27/2010

Banks Get New Restraints

Wall Street Journal 09/13/2010

Basel Rules Unlikely to Force Capital Raising

Wall Street Journal 09/14/2010

No Quick Dividend From Basel

Wall Street Journal 09/14/2010

Equity sales by European banks in 2011-2013 to meet new Basel III standards

01/21/2010

Grouped Articles

IMF Urges EU Banks To Raise Capital

Wall Street Journal 09/22/2011

The Battle Over Bank Rules at Basel III

BusinessWeek 05/27/2010

Banks Get New Restraints

Wall Street Journal 09/13/2010

Basel Rules Unlikely to Force Capital Raising

Wall Street Journal 09/14/2010

No Quick Dividend From Basel

Wall Street Journal 09/14/2010

After Basel, the Banks Are Not Safer

BusinessWeek 09/15/2010


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