Global banking regulators have softened proposed new capital rules in a bid to ease European concerns that extra demands would cause banks to crimp their lending, three sources said.
The Basel Committee of banking supervisors from nearly 30 countries met in Chile last month in an effort to complete new bank capital rules used by lenders in the world’s major financial centers. It is now trying to pin down the details.
Among the most contentious elements proposed by the Basel Committee was a capital “output floor”, which the sources told Reuters on Tuesday its members have now agreed to change. They have also reached a preliminary deal on setting higher leverage ratios for the world’s 30 top lenders, they added.