Banks Emerge Winners From Final Post-Crisis Capital Rules
By Boris Groendahl, Nicholas Comfort, Silla Brush, and Edward Robinson
Banks emerged relatively unscathed from global regulators’ final batch of post-crisis capital rules, with few lenders needing to raise major new funds. The Basel Committee on Banking Supervision on Dec. 7 issued new rules on how banks estimate the risk of mortgages, loans and other assets. The compromise, reached after fierce lobbying by the industry, will cause “no significant increase” of overall capital requirements, the regulator said. For some big banks, capital demands will actually decline. …“The only reason this deal was reached is that every national agency I know believes it is more critical to preserve the global framework in spirit if not now also in letter,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics in Washington. “They all fear a pell-mell race to the bottom; with the agreement, the facade is intact even if the reality remains fragile.”