Basel Committee Softens Bank Capital Rules, Sets Leverage Cap
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The Basel Committee on Banking Supervision softened some of its proposed capital and liquidity rules while introducing new restrictions on how much lenders can borrow in order to rein in their risk-taking.
The panel agreed today to allow certain assets, including minority stakes in other financial firms, to count as capital, according to a statement. The committee set a new 3 percent leverage ratio to apply to banks globally, which could become binding as early as 2018, pending further adjustments to the ratio and the method of calculating banks’ assets.