Federal Reserve adopts Basel III for US banks

federal reserve

The Federal Reserve will introduce Basel III on January 1, after its board of governors voted unanimously yesterday to impose higher capital requirements on the United States banking system.

The Fed's final rule will force banks to hold common equity tier 1 capital equivalent to 7% of their risk-weighted assets, reflecting a minimum ratio of 4.5% and an additional capital conservation buffer of 2.5%.

According to analysis conducted by the Fed board staff, around 95% of bank holding companies wou

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