GLOBAL BANKERS AGREE NEW CAPITAL RESERVE RULES
Baku, September 13 (AZERTAC). The deal still needs to be ratified by leaders of the G20 group of nations Central bank governors and senior regulators have agreed new rules designed to prevent a repeat of the recent financial crisis.
At a meeting in the Swiss city of Basle, they agreed a deal requiring banks to hold more capital in reserve.
Lord Turner, chairman of the UK`s Financial Services Authority, said the new rules represented "a major tightening of global capital standards and will play a major role in creating a more resilient global banking system".
European Central Bank chief Jean-Claude Trichet said the new regulations - called Basel III - were "a fundamental strengthening of global capital standards".
"The transition arrangements will enable banks to meet the new standards while supporting the economic recovery," he added.
In a joint statement, the US Federal Reserve and other major US banking regulators said the deal "provides for a more stable banking system that is less prone to excessive risk-taking".
Low levels of capital relative to assets were a major factor in the recent global financial crisis.
The agreement, due to come into effect from 2013 and be phased in over several years, still needs to be ratified by the heads of government of the G20 group of nations at their summit in November.
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