The Great Debate UK

from Felix Salmon:

Basel III: The compromise

By Felix Salmon
September 9, 2010

Maybe 9% was too good to be true after all. According to David Walker, of Australia's Banking Day, a compromise with "nations including Germany, France, Italy and Japan" has knocked 0.5% off the proposed Tier 1 capital requirements, and another 0.5% off the proposed conservation buffer. As a result, banks wanting to pay dividends are now going to have to have a minimum of 8% Tier 1 capital, rather than 9%.

from Felix Salmon:

Will Basel III really deliver?

By Felix Salmon
September 7, 2010

I very much hope that Die Zeit is right about the Basel III capital requirements: the numbers being mooted there are definitely at the top end of what anybody expected.

from Felix Salmon:

The good and the bad of Basel III

By Felix Salmon
June 25, 2010

It's looking as though the FT was, thankfully, a little over-hasty when it led today with a big story saying that the banks have won the Basel battle over liquidity requirements. A BIS spokesman (the BIS is the organization hosting the Basel III negotiations) says that weakening liquidity requirements hasn't even been discussed, let alone agreed to. Yes, it's likely that the banks will win some concessions at some point, but there's a long way to go before then.