US Federal Reserve governor Daniel Turullo said that banks' capital requirements required by regulations should be a ceiling, not a floor.
Following on from comments made earlier about cracking down on bank’s capital requirements and tackling systemic risk, Tarullo said that Basel III capital requirements should be seen as a minimum. He pointed to the UK and Switzerland as good examples of where banks have gone above and beyond Basel.
As such it is likely that the US will be implementing tougher rules. Tarullo revealed that the Fed had discussed varying individual requirements depending on the systemic risk of a firm, but concluded that it wouldn’t have been practical to implement.