The Group of Governors and Heads of Supervision, an oversight body for world banking, on Saturday said it raised capital requirements for loss absorbancy to as much as 3.5% in a move hailed as a step toward reducing hazards faced by major international lenders.
Jean-Claude Trichet, president of the European Central Bank and chairman of the Group of Governors and Heads of Supervision, said the agreement would “help address the negative externalities and moral hazard posed by global systemically important banks.” -MarketWatch