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British banks will have to have a core Tier 1 of at least 10% and should take steps to protect your business minires risk investment banking.
Proposals for the Independent Commission on the Bank to be known today have been a relief for the market, which feared that the new regulations would tighten the nuts more UK financial institutions.
It states that banks will have to have a ratio of core Tier 1 , ie, the capital of higher quality than 10%. A figure that has not caught by surprise entities that months striving to reach these levels of solvency. Although Basel III, in principle, requires a minimum of 7% principal, regulators from different countries are imposing higher ratio to ensure the strength of their financial systems against any possible crisis.
Another aspect of the report of the Commission which has brought relief to markets is the retail business division with respect to investment banking. In the area there who predicted that the Commission would request the segregation of these activities, but the report only suggests the creation of firewall mechanisms and develop retail banking through a subsidiary that has its own capital.
The final report of the Commission will report in September. Until then, banks have time to pressure to soften some aspects of regulation, eventually, not to your liking. Entities such as Barclays and had even threatened to move its headquarters from England if the new regulation was going to hurt. Lloyd's
The injured the report of the Commission is Lloyd's. The agency believes that the bank must do more to restore the rule of skills that were affected when bought HBOS what gave it a dominant position in the UK retail market with a market share of up to 30%.
According to the report, the Lloyd's plan to sell about 600 branches will not be enough to alleviate the problems of skills.
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