Broad Basel Agreement On Bank Capital Reform And Contingent Capital

The oversight body of the Basel Committee on Banking Supervision issued a press release that it reached broad agreement on the overall design of bank capital and liquidity reform.

In particular, there is agreement on the definition of capital, the treatment of counterparty credit risk, the leverage ratio, and the global liquidity standard. Noteworthy, there is agreement on contingent capital, a capital conservation buffer and a counter-cyclical capital buffer.

The Committee will finalize the requirements before the end of the year and agreed to finalize the phase-in arrangements at its meeting in September.

The specifics of the proposal are available here.

The press release is available here.

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