Bank buffers aid economy, says Basel study
The economic benefits of requiring the largest banks to hold extra capital far outweigh the costs to the economy, a study by a division of the Financial Stability Board and the Basel Committee on Banking Supervision has found.
If 30 of the biggest banks had to increase their capital by one percentage point over the next eight years, it would trim 1bp off GDP over each of those years, the Macroeconomic Assessment Group (MAG) concluded.
Rules proposed by the Basel Committee will require global systemically important banks
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