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That stops short of holding banks to a higher capital standard overnight.
The funds would be used to help banks that are still meeting a minimum capital standard but are in need of help strengthening their balance sheets.
Of the $5 billion, $2 billion will count in the measure of capital called Tier 1 under the current capital standard, known as Basel I.
Although supervisors can adjust accounting standards to assess regulatory capital, such divergence sits awkwardly with hopes for a global capital standard.
While the Fed got hammered by critics who assailed the tests as too deferential to the banks, the central bank was doing something unprecedented and holding the banks to what it viewed as a solid capital standard.
The Dutch bank had struggled to prepare for Basel 2, the new capital standard; last November RBS said that implementing it would roughly double capital requirements at its bit of ABN, an abnormally high increase.
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The biggest hurdle is actually the fact that regulators in Britain and global bank capital standard-setters in Basel, Switzerland, still haven't issued clear guidelines on the treatment of contingent capital.
Tougher capital standards make sense.
Anat Admati offers Congressional testimony on capital standards.
It's not just banks who dislike higher capital standards.
It also wants to impose tougher capital standards on banks to make them more robust.
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