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Banks Can Sleep Easier

Basel Committee says it won't 'significantly' increase banks' capital requirements any further in the remaining stages of its rules overhaul.

By Boris Groendahl and Silla Brush, Bloomberg | Updated on January 11, 2016

Global banking regulators pledged to refrain from further tightening capital requirements with new rules to be finalized in 2016, dispelling industry fears that triggered intense lobbying efforts over the past year.

The Basel Committee on Banking Supervision doesn’t plan to raise capital requirements across the board in the remaining projects of its post-crisis bank rule overhaul, it said Jan. 11 after a meeting of its oversight body, chaired by European Central Bank (ECB) President Mario Draghi. The group, which includes the Bank of England and U.S. Federal Reserve, said it will assess the potential costs of any additional action.

"Global regulators clearly hope to tamp down continuing talk of a 'Basel IV' rule, emphasizing in both action and statements that continuing changes are recalibrations, not hikes." --Karen Shaw Petrou, Federal Financial Analytics“The committee will conduct a quantitative impact assessment during the year,” the group said in a statement. “As a result of this assessment, the committee will focus on not significantly increasing overall capital requirements.”

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