The regulator could establish minimum capital requirements for the two companies and limits on their portfolios.
Broadly, Basel 2 banks are likely to have lower minimum capital requirements than Basel 1 banks.
But registering a business requires a minimum capital equal to nearly five times annual income per capita.
These accords are a global regulatory standard on bank minimum capital requirements, bank liquidity, and bank leverage.
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The Basel Committee is also trying to set minimum capital requirements, which would make banks more able to absorb losses.
Not enough is coming into the coffers to pay half-decent wages and cover the minimum capital investments the state must make.
Basel I was reached in 1988, set minimum capital requirements for banks and is enforced by law in the G-10 countries.
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Instead banks will probably face a sliding scale, with minimum capital ratios rising as they get bigger or embrace more risk.
Almost any bank with a lot of retail business except for sub-prime lending and perhaps credit cards can expect its minimum capital to fall.
Establishing large minimum capital requirements unnecessarily prevents new businesses from being formed.
Basel II left the minimum capital requirements at 8% of risk-weighted assets.
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Ally Financial was the only bank to fall below the minimum capital hurdle of a 5% capital buffer required to pass the test.
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In the credit-risk area, the weight attached to mortgages looks likely to drop by 30-50%, cutting the minimum capital requirements of banks specialising in home loans.
Because they have counted this as a cost, they say that minimum capital requirements should be calculated on the basis of credit-card assets net of expected losses.
Cutting the minimum capital requirement is a small positive step.
In the UK, the Vickers Report recommended that UK retail operations of domestic banks be fenced away from their trading activities by 2019, and subject to higher minimum capital requirements.
While the January package referred vaguely to "strengthening the legal and supervisory framework for banking, " the new deal sets minimum capital of 250 billion rupiah and makes loan-loss provisions tax-deductible.
And Egypt has proven a remarkable reformer recently, slashing minimum capital requirements for starting a business, cutting costs for property registration and speeding up shipping times on imported and exported goods.
The ICB's other headline proposal is that large British banks should have to hold bigger buffers against losses than currently proposed under Basel 3, a new international agreement on minimum capital requirements.
So if the new minimum capital bar were set at 7% (and we have no idea where it will ultimately be set) RBS would seem to need to raise a few billions of additional capital.
To the present accord's emphasis on regulation are added enhanced roles for the market, and for supervisors, who will, for example, be able to force some banks to hold more than the regulatory minimum capital.
And if ministers want to do what investors and creditors apparently want them to do, which is to force a serious recapitalisation of big French banks, the minimum capital threshold would have to be set high, at 8%.
The proposals are based on the work of the Basle committee on banking supervision, which represents bank supervisors in the big industrial countries, and has spent several years designing a new framework to set minimum capital standards for internationally active banks.
The three main regulators' committees at the bank on banking supervision, payments and settlements, and foreign-exchange have done important work establishing the minimum capital requirements for banks, drafting international principles for bank supervisors and writing a voluntary code of disclosure for banks' derivatives exposures.
They have to hold a minimum total capital of 8% of risk-weighted assets - that is, capital held to back the loans that they make.
If the minimum stressed capital ratio were set at 8%, Royal Bank of Scotland, Barclays and Lloyds would all be forced to raise new capital.
The minimum tier one capital ratio needed to pass the test is 5%.
The agreement, made in September, changed the minimum cushion of capital that a bank must keep to avoid losses on their loans.
Banks must maintain a minimum amount of capital (equity, mainly) in relation to their loans: the riskier the loans, the more capital they must have.
Yet another benefit of the Flat Tax Act is that it reforms not just the income portion of the code, but also eliminates federal gimmicks that stymie economic growth such as the Alternative Minimum Tax, capital gains taxes, the estate tax and the marriage penalty.
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