July 27, 2010
New banking rules to prevent a repeat of the financial crisis will not come fully into force for seven and a half years as part of a “broad accord” on the design of banking reform struck on Monday by global regulators.
- A d v e r t i s e m e n t
In a landmark agreement, the Basel Committee on Banking Supervision has decided to stagger the implementation of new rules over five years – starting on January 1, 2013. Full reform must be completed by January 1, 2018, the committee said.
Confirmation that banks will be given a period of grace to support the economic recovery came as policymakers across the world signed up to an outline package of regulations for the financial system.
“Governors and heads of supervision reached broad agreement on the overall design of the capital and liquidity reform package,” the committee said. “This includes the definition of capital, the treatment of counterparty credit risk, the leverage ratio, and the global liquidity standard.”