U.S. banking regulators back tougher regulation standards

08:58, September 13, 2010      

Email | Print | Subscribe | Comments | Forum 

The U.S. Federal Reserve and other banking agencies said on Sunday that they support the endeavor to strengthen the capital position of large banks, in a bid to discourage excessive leverage and risk taking.

"The U.S. federal banking agencies actively supported the efforts of the the Group of Governors and Heads of Supervision (GHOS) and the Basel Committee on Banking Supervision (Basel Committee) to increase the quality, quantity, and international consistency of capital and to strengthen liquidity standards," the Federal Reserve announced in a joint statement.

The agreement reached at the Sept. 12 meeting of the GHOS, in combination with the agreement reached at the July 26 meeting of GHOS this year, "sets the stage for key regulatory changes to strengthen the capital and liquidity" of globally active banking agencies in the United States and around the world, according to the statement.

The Basel Committee's package of reforms will increase the minimum common equity requirement from 2 percent to 4.5 percent. In addition, banks will be required to hold a "capital conservation buffer" of 2.5 percent to withstand future periods of stress.

The agreement, known as "Basel III", will force banks to set aside more capital to cushion the possible financial turmoil.

"Today's agreement represents a significant strengthening in prudential standards for large and internationally active banks," said the Federal Reserve.

The GHOS announced that the new numerical minimum requirements would be phased in over two years beginning on Jan. 1, 2013, and that certain capital deductions and the phase-in of capital buffers would occur over time from Jan. 1, 2014, to no later than Jan. 1, 2019.

This transition period is designed to give banking institutions the opportunity to implement the new prudential standards gradually. The GHOS is the oversight body of the Basel Committee.

Source: Xinhua

(Editor:祁澍文)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • The romantic myth of the Aegean 
The Aegean Sea is between the Greece Peninsula and Asia Minor Peninsula, dotted with many beautiful scenery islands, like a paradise on earth.  The ancient city of Troy in the east coast of Aegean, Turkey, and Mycenaean sites in the west bank of Greece, which have been archaeological discoveries, now are the must visit places in journey of the Aegean Sea. Above, these desolate dilapidated stone, the sunny blue sky and white clouds and vessels roaming at sea, arriving and departing travellers, add more romantic to the sea and the islands.
  • Chinese Permanent Representative to the United Nations Li Baodong (R) welcomes UN Secretary-General Ban Ki-moon in New York, the United States. Sept. 29, 2011. The Chinese permanent delegation to the UN held a reception on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China and the 40th anniversary of China's returning to the UN. (Xinhua/Shen Hong)
  • Chinese ambassador to Bulgaria Guo Yezhou delivers a speech during the reception in Sofia, capital of Bulgaria, on Sept. 29, 2011. The Chinese Embassy in Bulgaria held a grand reception here on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China. (Xinhua/Wang Meng)
  • A model presents creation by Mexican designer at Mexico Fashion Week, Mexico City, Sept. 29, 2011. (Xinhua/AFP Photo)
  • Tourists walk in front of the Reichstag building in Berlin, capital of Germany, Sept. 29, 2011. Fine weather on Thursday added to the mood of outdoor leisure for residents and tourists in Berlin. (Xinhua/Ma Ning)
  • Dancers from National Ballet Troupe of Spain perform during a rehearsal for the press at Taipei, southeast China's Taiwan, Sept. 29, 2011. The troupe will put on Dualia and La Leyenda, two folk dances here from Sept. 30 to Oct. 2. (Xinhua/Wu Ching-teng)
Hot Forum Discussion