Americas: Capital rules gone wild

Author: | Published: 27 Aug 2013
How many foreign banks are considering this for their US operations?

If US regulators are on a mission to drive foreign banking operations out of the country, it is working. More and more non-US banks are rumoured to be considering de-banking in the country, as a result of its over-the-top approach to capital rules and bank regulation.

This approach gained further momentum in July, with bank authorities proposing leverage ratios that double the Basel III three percent standard. True, this enhanced supplementary test only applies to the country's biggest banks – many of which have already...