Asia Bizz: New Rules Agreed by the Central Bank Governors and Senior Regulators
The Central Bank Governors and Senior Regulators have agreed to the new rules made to avoid and not repeat the recent financial crisis.
The meeting was held at Basle and the agreement is to make sure banks have more capital in reserve. This deal will surely be a huge milestone in the world of banking reform.
This step will help banks face losses in the future without relying too much on taxpayer help.
The chairman of UK’s Financial Services Authority, Lord Turner said ,
“a major tightening of global capital standards and will play a major role in creating a more resilient global banking system”.
“The transition arrangements will enable banks to meet the new standards while supporting the economic recovery.”
The reason of the recent global financial crisis was due to low levels of bank capital which were relative to assets.
