Basel Regulators Agree to Boost Banks’ Capital Ratios

Sept. 12 (Bloomberg) -- Regulators from 27 nations said banks worldwide need to have common equity equal to at least 4.5 percent of assets weighted according to their risk profiles, with a buffer of 2.5 percent.

Lenders will also be required to have a Tier 1 capital ratio of at least 6 percent, the Basel Committee on Banking Supervision said in a statement today. The rules will be phased in from 2013 until the end of 2018.

The capital ratios proposed to the committee when it met on Sept. 7 were 5 percent for common equity, with a 2.5 percent buffer for bad times, and 6 percent for Tier 1 with a 3 percent buffer.

To contact the reporter on this story: Yalman Onaran in New York at yonaran@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net