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Banks win battle to soften capital requirements for Basel III rules

INTERNATIONAL banking regulators are preparing to strip down their recommendations on how to ensure the industry’s financial strength, following months of wrangling.

In an attempt to ensure the timetable for announcing the reforms can go ahead as planned in November, a consensus within the Basel Committee is now suggesting that the radical blueprint of global proposals published six months ago should be thinned down, according to regulators and bankers.

It’s likely the reformed Basel III rules would not resolve disagreements on many of its most contentious proposals on capital, liquidity and leverage. A draft of the committee’s latest thinking is set to be presented at the G20 summit in Toronto at the weekend.