Banks would have needed 602 billion euros to meet Basel III

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Banks would have required an additional 602 billion euros in capital at the end of 2009 to meet new Basel III rules aimed at boosting the resilence of financial institutions, regulators said Thursday.

If the new rules on raising top quality capital from 4.0 percent to 7.0 percent of risk assets were applied to banks at the end of 2009, "group one banks in aggregate would have had a shortfall of 577 billion euros."

In addition, "group two banks... would have required an additional 25 billion euros," the Basel Committee on banking supervision said in a study measuring 263 banks from 23 member jurisdictions.

Group one banks are made up of big international banks that have core Tier 1 capital in excess of 3.0 billion euros (3.9 billion dollars) while group two includes all other banks.

© 2010 AFP

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