Daily News: March 25, 2013

Reuters: Basel Cracks Down on Banks’ Capital Protection Ploy

Reuters reported that global regulators have proposed hefty charges to cancel out capital relief banks enjoy when buying pricey insurance to cover risky loans without acknowledging the cost in a timely way.

The article said the committee accepted that credit protection can be an effective risk-management tool, but the costs should be appropriately recognized in a bank’s capital buffer.

To read the full Reuters article click here.