IOSCO-Higher capital levels for banks crucial-Brazil watchdog

MONTREAL, June 8 (BestGrowthStock) – Brazil’s market regulator said
on Tuesday that tough new global bank capital rules are the
most important piece of legislation that will emerge when the
Group of 20 developed and emerging economies meet this month.

“The most important point … is improvement in the capital
requirements and the type of leverage that you allow financial
institutions to get to,” Brazil’s top securities regulator
Maria Helena Santana told Reuters Insider.

“I guess that’s the most important piece of legislation
that is going on,” she said on the sidelines of a conference in
Montreal.

The G20 agreed last year to finalize sweeping new bank
capital and liquidity rules this year and to put them into
effect by the end of 2012. But banks have mounted a vocal
campaign for a longer phase-in, arguing the new rules will make
it hard to continue lending to support the economy and to build
up bigger capital buffers in volatile markets.

“Finance ministers and regulators showed concern on the
timetable for implementing that change. It seems that everyone
is now seeing that it must be postponed due to concerns on the
health of the economy,” said Santana, the chair of Brazil’s
Securities Commission.

The G20 will meet in Toronto, Canada this month.

Investing
(Reporting by Jennifer Kwan, Rhonda Schaffler, Jonathan Spicer
and Rachelle Younglai; Editing by James Dalgleish)

IOSCO-Higher capital levels for banks crucial-Brazil watchdog