FIN.

Global banking capital rules postponed

The Basel Committee working on Basel III rules that will determine how much capital lenders would have to set aside against loans and other assets, announced on 3 January 2017 that more work was required on certain aspects.  The rules were due to have been approved by central bank governors and the heads of supervision from over 30 countries on 8 January.

The new rules, which are likely to take effect from 2019, are likely to increase the capital requirements for banks, and there are concerns that this may in turn impact their ability to lend money.

The Committee is due to meet again in early March.

Emma Radmore