Basel Committee On Banking Supervision

As regulations grow stronger, asset managers must weigh the potential benefits and drawbacks of letting third parties manage collateral for them.

Leverage problems ‘almost always end up in the banking system,’ but authorities can’t rely on one single ratio to safeguard system.

A capital buffer of 2.5% will be retained by the world’s central banks in order to stay protected during a crisis.

Mario Draghi, governor of the Banca D’Italia and chairman of the Financial Stability Board, has criticized European and U.S. banks for trying to weaken new rules adopted by the Basel Committee on Banking Supervision, reports GFS News.

The central bank of the U.S. has voiced its support for moderate capital rules for leading global banks set forth by European regulators in an effort aimed at avoiding future bailouts, according to Bloomberg.

The Basel Committee on Banking Supervision proposal to force systemically important firms to meet’ higher capital requirements could affect between 15 and 26 institutions globally, reports Bloomberg.

U.S. Department of Treasury Secretary Timothy Geithner and Michel Barnier, the European Union’s commissioner for internal markets and services, jointly announced their commitment to stricter capital requirements adopted by the Basel Committee on Banking Supervision, reports Reuters.

Banks in the European Union may get a break on tougher capital requirements if a draft proposal on Basel III requirements is adopted, reports Financial Times.

Nout Wellink, chairman of the Basel Committee on Banking Supervision, said the new capital requirements adopted by his committee do not fully address the problems of banks deemed too big to fail, reports Dow Jones Newswires.

The implementation deadline for capital requirements adopted by the Basel Committee on Banking Supervision is too long, and may lack relevance by the time that date arrives, according to Chris Brummer, a senior fellow at the Milken Institute, reports SmartBlog.