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Eight largest US banks must raise capital buffers

US banking regulators on Tuesday ordered the eight largest "too big to fail" banks to raise capital levels in a bid to address weaknesses seen in the 2008 financial crisis. Federal Reserve Chair Janet Yellen said the robust capital standards -- the banks will need to raise a reported $68 billion in additional capital -- were "essential to reduce systemic risk and mitigate the distortions imposed by institutions deemed too big to fail." Fed Governor Daniel Tarullo said the bigger capital cushion would serve as a "critical backstop" to the banking system.

8 largest US banks ordered to raise capital buffers

US banking regulators on Tuesday ordered the eight largest "too big to fail" banks to raise capital levels in a bid to address weaknesses seen in the 2008 financial crisis. The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Treasury Department's Office of the Comptroller of the Currency adopted a final rule requiring the systemically important banks to hold significantly increased levels of high-quality capital in relation to their risk exposure, their so-called supplementary leverage ratio.

U.S. regulators to vote on final bank leverage rules

WASHINGTON (Reuters) - Financial regulators will vote on Tuesday to finalize tough requirements for U.S. banks' leverage that are expected to be stricter than the rules overseas firms must follow. The rules, under consideration by the Federal Reserve, Federal Deposit Insurance Corp and Office of the Comptroller of the Currency, would force banks to fund part of their business through less risky sources such as shareholder equity, rather than by borrowing money.

Big banks closer to meeting new capital rules

Large banks are moving closer to meeting their capital requirements under Basel III, the banking reforms imposed to avoid a repeat of the 2008 global financial crisis, a study found Thursday. The Basel Committee, which monitors lenders' progress towards meeting the new rules, said that as of June 30 last year the 102 big international banks in its study were 57.5 billion euros short of their targeted capital cushion. The banks had cut their shortfall by nearly half from just six months earlier, the committee said in a statement.

Banks must accept risk weights need fixing: Basel's Ingves

By Huw Jones LONDON (Reuters) - Changes to how banks add up risks on their books to determine capital levels are inevitable and lenders must acknowledge there is a problem to be fixed, a global banking supervisor said on Tuesday. Stefan Ingves, chairman of the Basel Committee of banking supervisors from nearly 30 countries, said variations in how banks add up risks were "uncomfortably wide" but not all lenders accept there is a problem in the first place.

Six banks team up in plan for shared customer data register

By Steve Slater LONDON (Reuters) - JPMorgan <JPM.N>, Citigroup <C.N> and four more major banks have signed up with an industry group to develop a central register of information on other banks they deal with to help to meet increasing compliance demands and costs.

Factbox: The road ahead for Europe's new banking watchdog

FRANKFURT (Reuters) - The European Central Bank (ECB) is set to become the euro zone's single bank supervisor from November. Before then, it wants to complete several checks on the banks it will watch over directly, appoint a supervisory board for the new institution and hire at least 1,000 staff. The main part is the so-called comprehensive assessment, which includes a backward-looking asset quality review and a forward-looking stress test of banks' balance sheets. All the results will be condensed and published in October.

Russia's central bank revokes licenses from two Moscow banks

MOSCOW (Reuters) - Russia's central bank has withdrawn the licenses of two small Moscow-based banks, part of its widening campaign to clean up the banking system and crack down on money laundering. Russia has more than 900 banks, mostly small, and many are suspected of servicing the shadow economy. Since taking up her position as central bank head last year, Elvira Nabiullina, has made it clear she wants to tighten banking supervision and shore up large-scale capital flight to boost the flagging economy.

Factbox: EU watchdog sets out health check for banks

(Reuters) - The European Banking Authority (EBA) on Friday announced details of this year's stress tests of banks designed to help draw a line under the financial crisis. Following is a summary of main points from the statement: * Tests to cover a theoretical three-year "shock period" from December 2013 * Stress scenario, to be devised by the European Systemic Risk Board and the European Commission, will be published in April or May and include shocks in interest rates, markets

Canada's banks will follow new Basel leverage standard, says regulator

TORONTO - Canada's banking regulator says it will require the domestic industry to adopt a new leverage standard soon to be used by other banks around the world. Starting next year, the Office of the Superintendent of Financial Institutions will begin following a leverage ratio created by the Basel committee on banking oversight. Under the Basel III leverage ratio, a Canadian bank will be required to have capital that is at least three per cent of its total assets — which is down from a longtime practice of five per cent.
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