Financial Regulatory Forum

Banks should hold more capital-G20 statement

By John Manley
September 5, 2009
Banks | capital adequacy | g20

Finance Ministers and central bank governors from the G20 nations pose for a group photo during a break in their meeting at the Treasury in London, September 5, 2009. G20 finance leaders pledged on Saturday to keep economic life-support packages in place until a recovery is firmly secured, but reached no deal on putting limits on bankers' pay. REUTERS/Simon Dawson/Pool (BRITAIN BUSINESS POLITICS)    LONDON, Sept 5 (Reuters) – Banks should hold more and better quality capital, the G20 said in a statement on regulation to be issued at the end of their meeting seen by Reuters.
   The statement said that banks would “be required to hold more and better quality capital once recovery is assured.”
   “We call on banks to retain a greater proportion of profits to build capital where needed,” the statement added.
   On bonuses in the financial sector, the statement fell short of calling for caps, saying that: “We also ask the Financial Stability Board to explore possible approaches for limiting total variable remuneration in relation to risk and long-term performance.” ((G20 newsroom))
 Keywords: G20 FINANCE/BANKS/STATEMENT
  
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 Saturday, 05 September 2009 15:20:20RTRS [nFCC000024] {EN}ENDS

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