As of Sept 2010 regulators agreed to provide global banks with more time before they start the process of imposing tougher capital requirements. Under these forthcoming initiatives banks will have to deal with significantly stricter requirements on the capital they must hold in reserve to have protection against losses.
Ralph Fogel’s take on this situation is that “’[t]hey don’t look as onerous as they could’ve been.’ He acknowledged the longer-than-anticipated time horizon for these restraints to get phased in is a positive development for financial stocks. ‘The longer that these things go out, the more possibility for change.’”
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