Global regulators agree on bank asset rules

Published on NewsOK Modified: January 6, 2013 at 12:47 pm •  Published: January 6, 2013
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King said that "the vast majority" of the world's biggest banks "already hold liquid assets well above the minimum required by this standard."

The rules are part of wider efforts to prevent another shock to the financial system like that prompted by Lehman Brothers' 2008 collapse, which led to taxpayer-funded bailouts of banks in the U.S. and Europe.

They are part of the so-called Basel III package of reforms. That package will require lenders to increase their highest-quality capital — such as equity and cash reserves — gradually from 2 percent of the risky assets they hold to 7 percent by 2019.