Central bank governors and top regulators from 27 countries have agreed on tough new bank capital rules to prevent future financial crises.
This content was published on
1 minute
swissinfo.ch and agencies
The delegates met at the Bank for International Settlements (BIS) in Basel on Sunday to hammer out the details of the deal. The Basel III reform is meant to ensure that banks have enough capital to sustain tough times without government aid.
The group, chaired by European Central Bank President Jean-Claude Trichet, had yet to release the specifics of the deal as of Sunday evening. However, an unnamed source confirmed that an agreement had been made.
Most of the Basel III details were settled in July. Sunday’s meeting focused on answering two key questions: how much capital would be required and how long banks would have to comply.
Leaders of the Group of 20 countries called for action in 2009 after the global financial crisis wreaked havoc. They are expected to endorse Sunday’s deal at their November meeting in Seoul. The new rules would be effective starting in stages from 2013.
swissinfo.ch and agencies
Popular Stories
More
Swiss Abroad
Aussie adoptee gains Swiss citizenship at 54 thanks to old envelope
Should Switzerland take measures to support its struggling industries?
Industrial policies are back in fashion, not only in the United States but also in the EU. Should Switzerland, where various industries are struggling, draw inspiration from such policies?
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Global financial crisis still casts shadows
This content was published on
Michel Dérobert tells swissinfo.ch that while the main financial players were quick off the mark when it came to issues relating to tax, there has been little progress on what he considers more important issues at stake. He cites the issue of “too big to fail” and questions relating to the comparative competitiveness of the…
This content was published on
UBS and Credit Suisse are deemed to be more resilient to stock market plunges and national debt defaults than some other European banks, according to separate reports by Swiss and European Union regulators. The EU and the Swiss Financial Markets Supervisory Authority (Finma) both released the findings of their stress tests on Friday. Both measured…
This content was published on
But regulating such large and complex institutions runs the risk of the rules themselves creating instability. Two national taskforces are currently weighing up how to solve the conundrum. The catastrophic effects on the Swiss economy of UBS or Credit Suisse going bankrupt are obvious. The two largest banks inject a large share of the 15…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.