With less mature, more illiquid markets, banks in Asia, Latin America and the Middle East face greater risks and constraints as they catch up to the Basel standards.
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Mr Osborne said the European Union should adopt these new Basel standards in full, a call echoed by Sir Mervyn King, the Bank of England's governor, who was speaking at the same event.
Once formally agreed by parliament and member states, the law will begin the most complex and far reaching overhaul of the banking system since the credit crunch, requiring banks over the next six years to strengthen their buffers of equity and liquid assets to Basel standards.
Sovereign spreads marched higher again in the run-up to Basel III standards on bank capital adequacy.
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Add the phase-in of new Basel III standards, and many banks feel less motivated to lend.
Gorman may be thinking about saving the cash in order to meet capital ratios set by the upcoming Basel II standards.
Under the new Basel III standards, banks will have to increase their tier-1 capital ratio, which measures the capital they hold back from lending or investing, to 4.5% by 2013, from the current standard of 4%.
And, because myriad Dodd-Frank rules remain unwritten and banks are facing the phase-in of new Basel III standards, to increase profits, banks can either make a riskier loan in an uncertain regulatory environment, or cool their heels and collect a small but risk-free return.
Banks deemed too-big-to-fail including Bank of America (BAC), JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) will also have to show that they are on track to meet the phase-in schedule for Basel III capital standards and the additional capital buffers that will be imposed on them.
She backs tougher international standards like Basel III, which would, among other things, illuminate off-balance sheet risk.
Some battle with the ambiguities of the Dodd-Frank Act in the US or the Basel III global capital standards.
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The new capital standards, called Basel II, will lower the capital requirements for commercial banks, making them more in line with those governing the brokers.
Measures that increase the resilience of financial institutions, such as the new Basel III capital and liquidity standards, will reduce the probability and frequency of a sudden liquidity shock.
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The package, called Capital Requirements Directive 4 (CRD4), brings the EU into line with the so-called "Basel III" rules on banking standards, which set new capital requirements for banks.
But according to the Journal, Goldman has more than enough money to meet the higher capital standards set by the new Basel III guidelines.
Negotiations in Basel have slowed as Europeans fret that stiffening standards may slow lending and hinder economic recovery.
But this is true only so long as the regulator does not rigidly apply the crude capital standards set in 1988 by the Basel committee on banking supervision.
Central bankers who make up the oversight body of the Basel Committee on Banking Supervision announced new capital standards for banks on Sunday, aimed at reducing the risk of another financial crisis that comes from a drying up of banks' liquidity.
The Basel committee on banking supervision , which sets capital standards for banks around the world, published a consultation document on December 17th that was more stringent than many bankers had expected.
European Central Bank chief Jean-Claude Trichet said the new regulations - called Basel III - were "a fundamental strengthening of global capital standards".
And as the bloggers at Naked Capitalism point out, the Basel committee focused on setting capital levels but did not address liquidity standards or accounting, two other crucial issues facing the banking industry.
FORBES: New Capital Rules Not Much of a Stretch for US Banks
Basel III was created in response to the financial crisis, the BCBS revised global banking standards.
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The most dramatic is likely to be a toughening of capital-adequacy standards, endorsed recently by G20 finance ministers and a group of central bankers and supervisors that oversees the Basel capital rules (see article).
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