Basel Committee to issue tougher capital standards.
Global Banking News-November 4, 2015--Basel Committee to issue tougher capital standards
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Global Banking News - 04 November 2015
Global banking prudential regulator, the Basel Committee, is said to be considering new capital rules that could put consumers in difficulty.
Even as the modalities are being worked out, commercial banks around the world have been asked to apportion more capital for reserves, which will mean that banking products will become more expensive. Already the Australian Prudential Regulation Authority (APRA) has forced the big four banks in the nation to put aside more capital against their housing loans. Banks have responded by raising interest rates on standard variable home loans by 0.15-0.20 percent over the past fortnight.
NAB chief executive, Andrew Thorburn, said, 'We will wait and see what they bring down and then we will have to respond in a thoughtful way. It is like competition - new competition. Capital requirements, as they change, we have to be agile.'
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