Global regulators to copy UK’s relaxed capital rules

Author: Danielle Myles | Published: 16 Oct 2012

Other countries are tipped to follow the UK Financial Services Authority’s (FSA) lead and soften bank capital requirements ahead of Basel III implementation.

The FSA’s proposed numeric capital floor, rather than a ratio, would benefit banks during the phase-in period. But it adds to fundamental concerns about the usefulness of Basel III’s complex capital calculations.

Last week’s announcement of the FSA’s plan coincided with the release of the European Banking Authority’s (EBA) capital report, which included statements suggesting that the EU regulator will monitor absolute capital levels in parallel with ratios.