Global regulators are poised to set a new tiered regime of additional capital requirements for about 30 of the world’s biggest banks, in their latest effort to ensure the next financial crisis can be contained.
At least eight banks, three from the US and five from Europe, are being targeted for capital surcharges of 2.5 per cent of their assets, adjusted for risk, on top of the “Basel III” minimum of 7 per cent set by global regulators last year.
If the proposals are adopted, Citigroup, JPMorgan, Bank of America, Deutsche Bank, HSBC, BNP Paribas, Royal Bank of Scotland and Barclays would have to maintain core tier one capital ratios of 9.5 per cent, according to two people briefed on the proposals.