German banks could require an extra £88bn under Basel rules

first_img Share Monday 6 September 2010 8:28 pm KCS-content Show Comments ▼ Tags: NULL Read This NextNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’Sportsnaut’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proofcenter_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyThe Sports DropForgotten College Basketball Stars: Where Are They Now?The Sports DropBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Timesautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldTaco RelishOnly People With An IQ Of 130 Can Name These ItemsTaco Relish whatsapp German banks could require an extra £88bn under Basel rules GERMANY’S 10 biggest banks may need €105bn (£87.8bn) of additional capital under a revamp of banking rules designed to prevent future financial crises, the country’s banking association said.International banking regulators known as the Basel Committee will likely require banks to have a Tier 1 capital ratio of six per cent, up from four per cent, said Germany’s BdB banking association, whose members include lenders such as Commerzbank and Deutsche Bank.Regulators are bumping up the amount of capital banks need to hold in an effort to ensure lenders have an array of loss-absorbing backstops that can be used to avoid another downturn such as the recent financial crisis.Buffers for capital conservation of an additional two per cent and a countercyclical capital buffer of two per cent more are also likely to be applied, the BdB said yesterday.The Tier 1 ratio and each of the buffers probably would be composed of 80 per cent of top quality or “core Tier 1” capital, which consists of equity capital and retained earnings, BdB said. Many leading banks already hold Tier 1 capital of 10 per cent or more. last_img read more