I am reading in a greek website (
www.bankingnews.gr) and I am translating using google translator:
Prepare a relaxation of the rules of the Basel III? - France and Germany are concerned about the impact on growth
27/01/12 - 07:43
After constant urging of the banking community to extend and relax the limits of application of new regulations on bank capital, Germany and France are expected to submit a proposal to change the original limits of the rules of Basel III
According to information leaked, France and Germany change their attitude, while the euro area economy is likely to go into recession or sluggish growth. Indeed, the proposal should be submitted to the Basel Committee to halt the immediate reduction in the levels of leverage and exposure of banks. This proposal contradicts the intentions of the British leadership, which wants to stay the rules as they are.
It is worth noting that according to analysts, the British side would among other rules remain unchanged, as both banks of the country under the umbrella of other state thus gain an investment advantage over the "weak" French banks.
Already, the central banks have begun checks on banks in the European Union, Japan and the United States to evaluate whether they achieve the agreed international standards of Basel.
The rules of Basel III require all banks to boost their capital reserves by increasing the overall "core" stocks to 7% from 2% at this time.
Moreover, regulators decided in 2011 to impose additional rules on the largest banks in the world, asking them to hold 1% to 2.5% extra in their basic reserves, more than 7% required for all banks.
Some bankers fear that the new rules will affect profits, since it would force lenders to keep more money in reserve and not capital for exploitation.
What is your opinion about this?
