BIS suggests three-year transition
Banks may be making some headway in efforts to lobby global financial regulators to give them more time to adapt to the framework of new rules supported by many national regulators. The Bank for International Settlements last night said in a covering announcement to a package of proposals that it was mindful of "the need to introduce these measures in a manner that raises the resilience of the banking sector over the longer term, while avoiding negative effects on bank lending activity that could impair the economic recovery."The BIS said it was looking to introduce the new rules in 2012.In Australia APRA has suggested that some elements of the local version of the proposals - principally relating to liquidity - may come into force at some stage next year.As for the proposals themselves, they are much the same as discussed all year.They include the shift to holdings of liquid assets to cover normal needs for 30 days, introduction of a simple leverage ratio to calculate minimum capital alongside the usual methods of risk-weighting assets, knocking out more hybrids from the definition of capital and increased capital requirements for counterparties on derivative trades.