The final piece of the ongoing post-crisis Basel III banking reform has been laid out today in a speech by Bill Coen, secretary general of the Basel Committee on Banking Supervision (BCBS).
Europe's largest banks will need to find an extra $95 billion of capital to comply with the tough banking rules due to be implemented in 2019, according to a report by the region's banking regulator.
Banks have won a significant concession from global regulators after being granted four more years to introduce measures that will make them less vulnerable to Northern Rock-style runs and financial shocks.
Europe is preparing to follow the United States in delaying the introduction of stricter rules on bank capital, while it lobbies for a rethink of the U.S. stance, EU sources said.
Christine Lagarde is involved in a struggle to raise funds for the International Monetary Fund amid fears that a fresh eruption of the global financial crisis will leave the organisation short of emergency cash.
At its 25 June 2011 meeting, the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision (BCBS), agreed on a consultative document setting out measures for global systemically important banks (G-SIBs).
Lord Turner, chairman of the Financial Services Authority (FSA), said Wednesday that already agreed regulatory reforms will have a major beneficial impact, but that further reforms are needed to make the financial system stable.