new 7% capital ratio rule

[archlight]

Hi all,

I just read news regarding minimum capital ratio increased to 7%. I suppose it is 8%. How come it is said to be increased?

Regards

 

[archlight]

i will just answer myself here

8% is number without weighting being applied. i believe 7% is number after weighting

OECD sovereigns — 0% risk weighting
OECD banks — 20% BIS risk weighting
corporations and non-OECD counterparties — 100% risk weighting

Regards