UK bankers fear capital floors higher under latest Basel II plans

The British Bankers' Association (BBA) is concerned that global banking regulators appear to have raised and expanded the application of the capital charges floor in the Basel II bank Accord, a BBA official said today.

The official was commenting on the statement on progress with the Basel II bank capital adequacy Accord issued earlier today by the Basel Committee on Banking Supervision, the architect of the Accord and the body that effectively regulates international banking. The BBA represents both foreign and UK banks based in Britain.

The BBA welcomed the overall statement as “a substantial step forward” in progress with the Accord, but not the last word. “We need the numbers and we need to test them,”

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