That also means it will be hit relatively lightly by the new Basel 3 capital rules.
But worries about wobbly European banks are causing disputes over the implementation of new Basel III capital requirements.
In theory, the new Basel III capital rules should be good news for bond investors since they will make banks safer, reducing the probability of default.
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 new capital standards, called Basel II, will lower the capital requirements for commercial banks, making them more in line with those governing the brokers.
Although the new Basel 3 global accords on capital adequacy are tough enough to have saved almost all banks during the crisis, a handful of firms worldwide, including HBOS, were outliers that lost far more than the average.
Banks are having a difficult time raising capital to meet these new Basel III requirements, and they have created a series of proccesses to meet the requirements.
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But according to the Journal, Goldman has more than enough money to meet the higher capital standards set by the new Basel III guidelines.
The new Basel rules are rightly designed to ensure bank capital and liquidity structures better reflect risks and reduce the systemic exposure for taxpayers.
New global regulations on capital, known as Basel 3, will force banks to set aside much more money to make their investment arms safer.
Its improved performance, though, was saddled by rising costs and a drag from higher capital requirements established in the new Basel III banking rules.
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 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.
The bank's so-called core Tier 1 capital ratio under new regulations known as Basel III rose to 8% from 6% a year earlier, then dropped to 7.8% after the bank provisioned for legal costs.
The Basel committee of banking regulators has launched new proposals on both capital and liquidity.
So does the Basel committee which is drawing up new rules for banks' capital requirements.
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.
European Central Bank chief Jean-Claude Trichet said the new regulations - called Basel III - were "a fundamental strengthening of global capital standards".
These new rules which are far stricter on capital and liquidity come from the Basel Committee on Banking Supervision (BCBS), and are known as the Basel III accords.
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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%.
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