Newsletter October 2010: The 19% ‘Swiss finish’

BERNE – Switzerland is the first country to decide it will “gold plate” the international rules agreed by regulators on September 12, aimed at significantly increasing banks’ capital requirements so that they can better withstand periods of stress. These agreed rules, known as Basel III, more than treble the minimum common equity capital that banks must eventually hold, from the present 2%, to 7% in good times. Total regulatory capital, under this agreed framework will be 10.5%.