FSB endorsing SIFI rules
The Financial Stability Board, the financial stability promotion group created by the G20 in 2009, has endorsed the latest planks of the new global financial stability framework.The FSB met overnight in Paris to consider measures approved last month by the Basel Committee to rein in "gobally systemically important financial institutions", or G-SIFIs.The new rules will impose additional capital requirements on around 30 of the world's largest banks by 2019. The additional capital - between 1.0 per cent and 2.5 per cent of risk-weighted assets - would be on top of the 7.0 per cent of assets that the Basel III framework requires banks to hold as tier-one capital.The FSB said in a statement that it would publish two papers in "the coming days" on how it would assess the global systemic importance of banks, what extra capital they should carry, and how failing G-SIFIs should be dealt with.The FSB is not expected to name the banks that will be affected by the new capital requirements. But they are expected to include Citigroup, JPMorgan, Bank of America, Deutsche Bank, HSBC, BNP Paribas, Royal Bank of Scotland and Barclays.