Regulators say banks near full compliance with post-crisis capital rules

A decade since Lehman Brothers bank collapsed, the world’s top lenders largely meet tougher capital requirements aimed at averting a repeat of the ensuing markets meltdown, regulators said on Thursday.

The Basel Committee of regulators said that, as of December 2017, the world’s 111 biggest cross-border, or “Group 1”, banks would have had a collective capital shortfall of only 25.8 billion euros ($29.8 billion) had all Basel’s rules been in force, a fraction of their earnings.

The overall core equity capital ratio, which measures capital to risk-weighted assets, would have risen to 12.9 percent from 12.5 percent in June 2017, roughly triple pre-crisis levels.

Basel has published regular updates on compliance with the tougher capital rules introduced in the aftermath of the crisis, but the latest assumes that a final batch of requirements agreed only last December are also in force.

 

Source: Reuters

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