It’s here — some 200 pages of new capital rules for banks from the Basel Committee.
Click below to get the 77-pager Basel III framework doc:
And below for government guidance in implementing the countercyclical buffers:
Or this for the 53-page liquidity risk measurement:
Or below for the 33-page quantitative impact study:
From what we hear, the documents look pretty much in line with what was announced by the Committee back in September. As for the impact — a quick glance at the study has large banks needing €577bn (at the end of 2009) to meet a new 7 per cent common equity Tier 1 regulatory capital ratio requirement. That includes both a 4.5 per cent minimum requirement and a 2.5 per cent capital ‘buffer.’
Watch the fine print though — according to a footnote from that second report, governments can raise those required countercyclical buffers over 2.5 per cent.
Related link:
Basel III — the analysts react - FT Alphaville