During meetings in Lulea, Sweden, on 14 and 15 June, financial regulator authorities meeting within the Basel Committee were unable to reach agreement on a compromise aimed at finalising international rules on strengthening capital requirements (Basel III).
The Basel Committee is still grappling with revision of “output floor” capital requirements. The draft compromise on the table gives a threshold of between 70 and 75%, calculated on an aggregated basis for all risks, and gradually...