The largest global banks cut the shortfall in the reservesthey'll need to meet Basel capital rules by 82.9 billion euros($112 billion) in the second half of 2012, leaving a gap of 115billion euros.

“Shortfalls in the risk-based capital of large internationallyactive banks continue to shrink,” the Basel Committee on BankingSupervision said in a statement on its website. The capital gapnarrowed by about 42 percent at the end of 2012 compared with themiddle of last year, the group said. The requirements, known asBasel III, are scheduled to fully phase in by 2019.

Lenders also need to do further work to meet a planned bindinglimit on bank indebtedness, known as a leverage ratio, the Baselgroup said. A quarter of large global banks failed to meet thestandard, it said.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.