OLD BANKING SYSTEM MUST DIE BEFORE

THE ONE WORLD BANKING SYSTEM

CAN BE BORN

International regulators agree on new bank rules

Sun Sep 6, 2009 3:42pm EDT
BASEL, Sept 6 (Reuters) -

Central banks and regulators of the world's leading economies agreed on a set of new banking rules on Sunday aimed at preventing future financial crisis.
The Group of Central Bank Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, said in a statement the new measures would substantially reduce the probability and severity of economic and financial stress.
The measures include new rules on banks' capital requirements, the introduction of a leverage ratio, a minimum global standard for funding liquidity and a framework for countercyclical capital buffers above the minimum requirement.

FACTBOX-Global regulators

set banking regulation framework

Sun Sep 6, 2009 4:55pm EDT Sept 6 (Reuters) -

Central banks and regulators of theworld's leading economies agreed on a set of new banking ruleson Sunday aimed at preventing future financial crisis.The Group of Central Bank Governors and Heads ofSupervision, the oversight body of the Basel Committee onBanking Supervision, said concrete proposals would be made byyear-end and the calibration should be done by end-2010. Following are the key measures planned: CAPITAL REQUIREMENTS: The regulators aim to raise the quality, consistency andtransparency of the Tier 1 capital base. The predominant formof Tier 1 capital must be common shares and retained earnings.Appropriate principles will be developed for non-joint stockcompanies to ensure they hold comparable levels of high qualityTier 1 capital.