Speed needed for banks to meet Basel III

first_img Share Show Comments ▼ Wednesday 22 September 2010 7:34 pm Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily Proof Banks must move quickly to meet tough new rules on capital despite the long-phase in period for some of the requirements, ECB Governing Council member and head of the Basel Committee on Banking Supervision Nout Wellink said yesterday.In a speech to a closed-door meeting of banking supervisors in Singapore, Wellink said regulators should stop banks from paying out dividends or bonuses if they fall short of the new minimum capital requirement even if the final deadline to meet the rules has not yet passed.“Banks should not be permitted to increase their distributions if they are still below the ultimate target but feel they can take their time to get there,” he said.The new Basel III rules, announced earlier this month in a bid to prevent another global credit crisis, require banks to hold top-quality capital totalling seven per cent of their risk-bearing assets, more than triple what they do now. They will start to take effect in January 2013 but changes to the definition of top-quality capital and the requirement for a capital-conservation buffer will not be fully implemented until 2018.Wellink, who is also head of the Dutch central bank, said regulators were continuing to discuss how to deal with large banks seen as “too big to fail”. But he added that measures being considered by the Basel Committee and Financial Stability Board included “combinations of a capital surcharge, bail-in debt and contingent capital”.Wellink rebuffed criticism that the new rules would hit economic growth, saying that they made the whole banking system more resilient to a financial downturn. “If, prior to the crisis, banks had the levels of capital we are asking for, we likely would not have experienced such a deep crisis,” he said. whatsapp whatsappcenter_img KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.com Speed needed for banks to meet Basel III Tags: NULLlast_img