BORNEO HOUSING AGENCY: Shop House in Seria Town • Industrial Warehouse in Menglait, Gadong for Rent • Shop house in Gadong (Ground Floor) for Rent • Industrial Shops in Bunut for Sale • Land in Jerudong for Sale • • Shop house in Kiarong for Sale (B$380.00) • TEL: +6738732975           >>           Private Company Urgently Need Houses & Flats for Rent in Bandar Seri Begawan, Kindly Contact the ff. nos. for further information: +673 222 0178/+673 873 2975           >>           Chinese Consulate General in San Francisco expresses condolences over Mayor Lee's death           >>           Japan's machinery orders increase 5 pct in October           >>           Boy, 6, Makes £8,200,000 A Year Reviewing Toys On Youtube           >>           Japan's machinery orders increase 5 pct in October           >>           Ukrainian capital sets record on road modernization in 2017: mayor           >>           Thomas Rhett And Florida Georgia Line's Tyler Hubbard Surprise Raelynn With Christmas Caroling           >>           Matildas' Sam Kerr wins Australia's Sports Personality of the Year award           >>           Ditch The Expensive GMO Seeds, Homesteaders! Switch To High-Yield, Natural, Open-Pollinated Seeds Instead           >>           Eating Mushrooms Every Day Fights Chronic Disease: Button Mushrooms Are High In Antioxidants, Researchers Discover           >>           Chinese shares open lower Wednesday           >>          





[email protected]



[email protected]



[email protected]



+673 222-0178 [Office Hour]

+673 223-6740 [Fax]


Upcoming Events

1001 inventions – Fountain
December 13th, 2017 | 09:00 AM

Motorcross Challenge
December 15th, 2017 | 08:00 AM

December Fruit Festival
December 15th, 2017 | 00:00 AM

Mystery On Aisle 5
December 15th, 2017 | 19:30 PM

Entrepreneurship Open Day
December 15th, 2017 | 08:30 AM

Prayer Times

The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


: 04:46AM


: 04:56AM


: 06:19AM


: 06:43AM


: 12:15PM


: 03:37PM


: 06:10PM


: 07:24PM


The Business Directory



World Business

  Home > World Business

Bankers In Scandinavia Say New Basel Rules Hit Them Unduly Hard

Photographer: Mikael Sjoberg/Bloomberg


 December 8th, 2017  |  09:25 AM  |   353 views



The financial industries of Sweden and Denmark were quick to criticize the Basel Committee on Banking Supervision’s completed framework on Thursday, arguing it will hit Scandinavian lenders too hard.


“The Basel standards will, if they are fully implemented in the EU and Sweden, have large negative effects for Swedish banks, their clients and the Swedish economy,” Hans Lindberg, the head of the Swedish Bankers’ Association, said in a statement on Thursday. In Denmark, the banking lobby said it is “fundamentally opposed” to the introduction of a capital floor, and pledged to work to ensure European authorities are aware of the “very unfortunate side effects of such regulations.”


The Basel Committee on Thursday ended a year-long deadlock, completing a capital framework intended as a response to the 2008 financial crisis. The agreement includes new curbs on how banks estimate the risk of mortgages, loans and other assets on their books in an effort to improve the transparency and health of lenders’ balance sheets, the committee said.


The new framework restricts the options lenders have with a limit on how low banks can drive their capital requirements by measuring asset risk with their own statistical models. Top European Union officials first opposed the inclusion of this floor, then pushed for a level of 70 percent of the result yielded by using a standard formula set by regulators. The U.S. sought an 80 percent floor, later coming down to 75 percent. In the end, negotiators settled on 72.5 percent.


In Scandinavia, lenders have typically relied on their own internal models to determine how risky their assets are and how much capital they need to hold. Sweden’s financial regulator said it won’t automatically start raising banks’ capital standards based on the Basel Committee’s completed framework.


Denmark said the new rules may add “substantially” to banks’ existing capital requirements. Business Minister Brian Mikkelsen said he’ll work to ensure the rules don’t hit credit institutions “unnecessarily hard,” according to a statement on the ministry’s website. A government-appointed panel has estimated the new Basel rules would add as much as 83 billion kroner ($13 billion) to the biggest Danish banks’ requirements by 2027.


Sweden’s Financial Supervisory Authority will “wait for new EU regulations before we can decide on new requirements,” Director Erik Thedeen said in a statement on Thursday.


The FSA “does not intend to mechanically increase capital requirements as an effect of new Basel standards,” he said. But the regulator “still sees that large capital buffers in banks are central to financial stability, and it cannot be ruled out that the capital levels in Swedish banks may need to increase when the agreement is implemented.”


Scandinavia’s financial industry has argued that the rules will hit banks unduly harshly by failing to take into account their low default histories.


“It is not reasonable that Swedish banks, which are already among the best capitalized banks in the world, will suffer harder than other banks by the new Basel regulatory framework,” Lindberg at the Swedish Bankers’ Association said. “We assume that the implementation in the EU and Sweden takes place in a manner that does not jeopardize the risk-based capital requirements that are successfully used in Sweden.”



courtesy of BLOOMBERG

by Tasneem Hanfi Brogger


If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]


Related News

Disaster Panels Activated

 2017-12-13 08:43:51

US Ready For North Korea Talks Without Preconditions, Says Tillerson

 2017-12-13 09:15:52

Emerging Markets Shrug Off Crises For Best Gains In Eight Years

 2017-12-13 09:41:00