U.S. banking agencies support conclusion of reforms to worldwide capital standards

Cornelia Mascio
Dicembre 8, 2017

The deal includes new curbs on how banks estimate the risk of mortgages, loans and other assets on their books in an effort to improve the transparency and health of lenders' balance sheets, the Basel Committee on Banking Supervision said in a statement on Thursday.

The oversight board of the Basel Committee on Banking Supervision agreed on the last batch of rules at a meeting in Frankfurt, Germany. "The package of reforms endorsed by the GHOS now completes the global reform of the regulatory framework, which began following the onset of the financial crisis". Regulators took action when these models failed to deliver accurate risk estimates during and after the financial crisis.

Owner of Charred Ranch Returns to Find Burned Horses
Owner of Charred Ranch Returns to Find Burned Horses

Global banking regulators on December 7 finalised new rules on how banks assess the riskiness of their assets for the goal of calculating minimum capital ratios. The reforms finalized today are meant to improve risk sensitivity, reduce regulatory capital variability, and level the playing field among internationally active banks.

The United States had sought a 75 percent floor while European countries wanted a 70 percent threshold. In the end, negotiators settled on 72.5 percent.

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