TAKE-A-LOOK-Basel Committee softens bank capital plan

The Basel Committee on Banking Supervision has announced a string of changes
to its draft Basel III reform aimed at forcing banks to hold far more of better
quality capital to withstand shocks without taxpayer aid again.

It forms the core response of a global effort to apply lessons from the
financial crisis.

Many of the changes have been welcomed by banks, whose shares rose on
Tuesday as a less draconian set of rules and a longer phase in was now in
prospect.

The full impact of the new rules won’t be known until later in the year when
the Basel Committee publishes numerical targets for bank capital requirements
and how long the sector has to phase out lower quality capital from 2012.

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BASEL COMMITTEE ANNOUNCEMENT

http://www.bis.org/press/p100726/annex.pdf

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TAKE-A-LOOK-Basel Committee softens bank capital plan