Community
The proposed surcharges I mentioned last week are on the books. The surcharges, between 1 percent and 2.5 percent of risk-adjusted assets, are meant to protect banks from themselves in the case of another financial crisis.
"The surcharge comes on top of the worldwide Basel III minimum of 7 percent set last year for all banks," according to last weekend's Financial Times. "That means roughly eight of the biggest, most interconnected banks have to maintain top quality ‘core tier one capital' equal to 9.5 percent of their risk-weighted assets by 2019. About 20 more banks will face total ratios of 8 to 9 percent."
So it looks like capital requirements are up and surcharges are in. Here's hoping banks realize that customer value is not out.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Anoop Melethil Head of Marketing at Maveric Systems
12 March
Alex Kreger Founder & CEO at UXDA
Jamel Derdour CMO at Transact365 - www.transact365.io
10 March
Nkahiseng Ralepeli VP of Product: Digital Assets at Absa Bank, CIB.
Welcome to Finextra. We use cookies to help us to deliver our services. You may change your preferences at our Cookie Centre.
Please read our Privacy Policy.