By Rachel Armstrong
New bank capital requirements agreed by global regulators brought relief to Asia’s financial sector on Monday as fears that lenders might be forced into fresh capital raising were put to rest.
The new rules, known as Basel III, will require banks to hold top-quality capital totalling 7 percent of their risk-bearing assets.
This is a substantial increase from the current requirement of 2 percent, but is significantly lower than what banks had feared earlier this year and comes with a phase-in period extending in some cases to January 2019 or later.
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