Banks' Crypto Assets May Get Hit With Capital Requirements
- Basel Committee is analyzing extent of lenders’ exposures
- FSB says crypto doesn’t currently threaten financial stability
This article is for subscribers only.
Global regulators signaled they may force banks to meet new capital requirements for their holdings of Bitcoin and other crypto-assets.
The regulations would determine how much capital lenders need to protect themselves against losses, short-term market volatility and other threats, and could push up firms’ financing costs. Global regulators are trying to fit Bitcoin and its offspring into existing rules designed for more conventional assets like mortgages and securities.