CHARLOTTESVILLE, Va. – Despite the delay in implementation of Basel III rules, large banks are moving forward to build their capital base.
The Basel III guidelines call for higher capital standards for banks, and there is growing discussion as to whether these rules will trickle down to CUs in some form, eventually requiring higher capital for credit unions (Credit Union Journal, Oct. 22). Last month, U.S. regulators delayed the effective date of bank compliance from the suggested Jan. 1, 2013, date.
According to SNL Financial, the uncertainties of when Basel III rules might be implemented have not stopped large U.S. bank holding companies’ progress toward building clearance of the minimum hurdle for Tier 1 common ratios under the new framework. While industry participants wait for further guidance on the notices of proposed rules, many of the largest banks have increased their Tier 1 common ratios estimates under Basel III and provided guidance on targeted capital levels, SNL reported.