GENEVA (AP) – A panel of central bankers, regulators and officials is proposing new rules that would require 30 of the world’s largest banks to hold vastly greater capital as a cushion in case of losses.
The Basel, Switzerland,-based Financial Stability Board says its proposal would not take effect until 2019 at the earliest and is meant to prevent a repeat of the 2008 global financial crisis by creating a common international standard for the “total loss-absorbing capacity” of global systemic banks.
The FSB said in a statement today that its proposals are a response to Group of 20 concerns.
One proposal could more than double the current requirement that banks hold capital buffers equivalent to at least seven per cent of risk-weighted assets by 2019.
