The Basel Committee on Banking Supervision, which includes representatives from 27 countries, now wants banks to hold 4.5% common equity against assets plus another 2.5% buffer, for a total of 7%.
The aggregate tier one common capital ratio - assets held in reserve as a buffer against financial troubles - would fall from an actual 11.1% in the third quarter of 2012 to 7.7% in the fourth quarter of 2014 in the hypothetical stress scenario.