Bloomberg reported that U.S. banking regulators seeking to prevent another global financial meltdown are set to impose new minimums for capital amid predictions that smaller lenders will get easier terms.
The Wall Street Journal reported the chairman of the Basel Committee signaled that regulators might be starting to understand how their rules contributed to the financial crisis and the damage these rules could do in the future.
As only one of many factors that will impact decisions about the allocations of bank capital, higher Basel III regulatory capital minimums are unlikely to move the needle up by more than 30 basis points on borrowing costs charged by the well-run lending operations of larger financial institutions to creditworthy customers.