Basel warns that top 28 banks must pay its capital surcharge

BANK regulators started consulting yesterday on two proposals to make the world’s biggest banks bear a new compulsory capital surcharge and draw up living wills to make them safer.

The Basel Committee has proposed that globally systemically important banks (G-SIBs) set aside equity worth one to 2.5 per cent of their risk-weighted assets, depending on their size and complexity, to make them safer.

About 28 such banks would set aside the surcharge at first, the committee said. It will consult until 26 August.

The Financial Stability Board also began consulting on its proposals to wind up struggling systemically important banks.

These cover living wills and bail-in plans, and will consult until 2 September.