Global regulators expect a deal ‘soon’ on finalising Basel 3 capital rules
London — Global regulators will soon finalise a suite of rules to ensure banks hold enough capital to withstand rocky markets without taxpayer aid, one of their top officials said on Thursday. The Basel committee had hoped for a deal in January, but its members could not agree on how to set a capital backstop known as an aggregate output floor, which ensures a minimum level of capital. The floor and other new rules complete Basel 3, the world’s core regulatory response to a global banking crisis that began in 2007. Much of Basel 3 has already been implemented. US President Donald Trump’s call to ease regulation on banks in a bid to boost lending to the economy, and threats by the European Union to stop the new rules if they forced European banks to find large amounts of fresh capital, have cast some doubt over the reforms. The committee’s secretary-general William Coen said setting the output floor was the "one piece of unfinished business". "Given the very broad support for reachin...
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