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He said: "Minimum leverage ratio is a vital component of the overall capital framework".
We also need to think about whether there should be changes to the Basel II capital framework.
The banks are right that equity has a cost, but the new capital framework is anything but excessive.
"We see that this power is necessary to implement a robust capital framework in the UK," the Governor told the Treasury Select Committee.
Instead, we believe the rationale behind a sale is that it would be beneficial to capital as bank investments in other financial institutions will be treated less favourably under the incoming Basel 3 capital framework.
The new rules are "extremely demanding" and "radically transform the regulatory capital framework," Nout Wellink, chairman of the Basel Committee on Banking Supervision and president of the Bank of the Netherlands, said at a meeting in Singapore of officials who regulate the financial industry.
Similar(29)
Flora's (2004) community capitals framework is applied to delineate a broad spectrum of impacts resulting from volunteer tourism.
It will take three to four years before the new "capital adequacy framework" takes effect.
A social capital analytical framework was developed to analyse the data.
Fig. 1 Proposed social capital measurement framework to be adapted per social, political, economic and cultural context.
The Basel Committee on Banking Supervision proposes a capital adequacy framework that allows banks to calculate capital requirement for their banking books using internal assessments of key risk drivers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com