Basel’s new 7% equity capital minimum welcomed

Basel’s new 7% equity capital minimum welcomed

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Relief was the immediate reaction from banks when the Basel Committee on Banking Supervision unveiled new minimum capital requirements on September 12. Although the rules require roughly a tripling of equity capital relative to pre-crisis levels, many banks have already made strides in that direction and will be given until 2019 to complete the journey. But the announcement has also sparked a debate about whether investors will accept the lower returns that go hand-in-hand with higher equity