Bank regulators in the US must consider the Dodd-Frank Act
as they prepare for new Basel III capital requirements.
Questions remain as to how the global requirements will
interact with the domestic legislation.
Under the rules, so-called systemically significant
institutions are subject to stricter regulation, including
higher capital levels and equity ratios than other
Although the Basel Committee has yet to give a specific size
to systemically significant banks, the Dodd-Frank Act applies
prudential standards for risk-based capital and
leverage to banks controlling at least $50 billion in
assets. The act also creates the Federal Stability Oversight
Counsel (FSOC) to designate bank holding companies other
financial institutions as systemically significant.
There will likely be...