Epress.am News from Armenia
Central bank governors and senior regulators have agreed new rules designed to prevent a repeat of the recent financial crisis, BBC reports.
At a meeting in the Swiss city of Basel (Basle), they agreed on a deal requiring banks to hold more capital in reserve.
BBC business editor Robert Peston says the deal is an important milestone in banking reform.
He says it should mean banks having a greater ability to absorb losses in future crises without taxpayer help.
In a joint statement, the US Federal Reserve and other major US banking regulators said the deal “provides for a more stable banking system that is less prone to excessive risk-taking.”
Low levels of capital relative to assets were a major factor in the recent global financial crisis.
The agreement, due to come into effect from 2013 and be phased in over several years, still needs to be ratified by the heads of government of the G20 group of nations at their summit in November.