FacebookInstagramTwitterContact

 

Realisasikan Gagasan Pemimpin, Menjayakan Wawasan Negara           >>           Jayakan Sambutan Penuh Gemilang, Warna-Warni           >>           Mufti Kerajaan Diundang Bentangkan Kertas Kerja Utama           >>           PBCTA Tingkatkan Semangat Kenegaraan           >>           Timbalan Mufti Sertai Persidangan Di Kaherah, Republik Arab Mesir           >>           Bersyukur Terpilih Menyertai Barisan Pasukan Ikrar           >>           Peserta Persembahan Padang Zahirkan Semangat Patriotik           >>           Kagum Dengan Keamanan Negara           >>           HOGB Chapter Adakan We Love Brunei Darussalam Ride           >>           Grand Assembly Of The 34th National Day Celebration           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events


Brunei Gastronomy Week
February 23rd, 2018 | 08:00 AM


Negara Brunei Darussalam 34th National Day
February 23rd, 2018 | 10:00 AM





Prayer Times


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


Imsak

: 05:06AM

Subuh

: 05:16AM

Syuruk

: 06:33AM

Doha

: 06:56AM

Zohor

: 12:35PM

Asar

: 03:52PM

Maghrib

: 06:34PM

Isyak

: 07:43PM

 



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  |   498 views

BLOOMBERG.COM

 

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.”

 


 

Source:
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


Existing Govt Still Right One – Musa

 2018-02-24 09:17:24

Rohingya Villages Destroyed 'To Erase Evidence'

 2018-02-24 09:26:13

Anbang Seizure Whets Buyers' Appetites for Buildings Across U.S.

 2018-02-24 10:04:42