European Banks Hit With Stiffer Capital Requirements

Law360, New York (October 3, 2012, 2:38 PM EDT) -- European banks will be subject to harsh capital requirements until the Basel international banking accords are implemented, even tougher than requirements set by the accords, the European Banking Authority said Wednesday.

The EBA will require banks to maintain 9 percent in Tier 1 capital — which is most able to absorb losses — against their risk-weighted assets pending the implementation of capital requirements under the 2010 Basel III accords in January. The Basel accords will require the largest global banks to hold 7 percent in Tier...
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