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New guidelines will also increase minimum capital requirements and the reserves that financial institutions must maintain.
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The Basel committee is still discussing how much to increase the minimum capital requirement.
One way of doing that would be to increase the minimum capital buffers banks have to hold if the economy is overheating; another would be to cut the size of mortgages they are allowed to make.
Banks have certainly not joined hands to fight for a globally enforced increase in capital buffers (the minimum capital they are required to hold), which could help them absorb and survive severe losses.
Mr. Dimon said late last month that he planned to await further improvement in the economy and more clarity about minimum capital requirements to be imposed by regulators before contemplating an increase in the dividend.
There are no minimum capital requirements.
How high are minimum capital requirements under Basel III?
At a minimum, capital controls could freeze all funds now in Cyprus.
M:access demands minimum capital of €2m, a website and an annual analysts' meeting.
Banks are still required to meet the minimum capital ratios set by the EBA by June 30th.
The authorities should also raise the minimum capital ratio that banks need to clear.
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