Basel Committee proposes "countercyclical capital buffers"

The Basel Committee on Banking Supervision's proposals for "countercyclical capital buffers" gave early indications of how bank rules related to capital and liquidity could work. Under the proposals, banks would be required to bolster capital when credit builds up in the marketplace, effectively reining in lending and establishing a larger capital cushion. Industry insiders and groups, including AFME, scrutinised the proposals. "We would prefer to see the regulators building on existing tools and practices rather than introduce new ones," said Mark Austen, acting CEO at AFME.

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