Banks Face Stiffer Capital Rules on Interest Rate Rise
Bloomberg reported that banks face a push from international regulators for stiffer rules on the capital needed to handle an unexpected rise in interest rates.
According to Bloomberg g, citing an interview with the chairman of the Basel Committee on Banking Supervision, the regulator is weighing updating its standards for capturing interest-rate risk on assets banks plan to hold to maturity.
Bloomberg notes that regulators are concerned that some banks may not be prepared for when the monetary policy tide turns and rates start to increase.
To read the entire Bloomberg report, click here.