A pedestrians walks under an arch opposite the Bank of England in London March 5, 2015. REUTERS/Suzanne Plunkett
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
The Basel Committee on Banking Supervision, whose members include the U.S. Federal Reserve and the People's Bank of China, said updated rules published Thursday will result in a weighted mean increase of about 40 percent in trading-book capital charges. The revised framework boosts the share of banks' risk-weighted assets produced by market risk to nearly 10 percent from about 6 percent under existing rules, the Basel group said in a statement.Mark Carney, governor of the Bank of England, said in December that some institutions had "taken extreme versions of the previous consultation and read that as that's what's going to come," and that "we see it as quite modest in terms of its overall impact in the U.K".The rules limit banks' ability to shift assets between the trading and the banking books, where they hold assets to maturity and aren't forced to write them down if market prices fall.
FOLLOW THIS ARTICLE