New US Bank Capital Rules
Published / Last Updated on 20/12/2011
New US Bank Capital Rules.
New rules for large US banks aimed at strengthening the financial system against another collapse have been proposed by the US Federal Reserve.
Under the proposals, banks with more than $50bn in assets will be required to increase the minimum amount of cash they hold. Banks with more than $50bn in assets would have to meet a Tier 1 capital ratio of 5%, which would rise to 7.5% by 2019, in line with the internationally agreed Basel III banking rules.
The larger financial institutions, including Bank of America and Goldman Sachs, would be required to raise up to another 2.5% as a capital cushion.