Banking regulators will review proposed capital requirements

Basel Committee on Banking Supervision is the primary global standard for banking regulations. The global banking standard-setter committee has plans to elaborate on its proposed capital requirements for cryptocurrency. The organization planned to take such measures after facing criticism from leading global banks. Hence, following the scenario, the committee announced that it will issue a new consultative document. Notably, the consultative documents will be issued by the committee by the middle of the next year.

Banks exposed to high risk cryptocurrency

The Basel Committee will soon review proposed capital requirements for banks with digital currency. In a recent statement, the bank of international settlements cited that it will further specify the proposed capital requirement. Moreover, besides specifying the requirements, the committee will also issue a new consultative document. 

– Advertisement –

It is worth noting that the global banking standard-setter released such a statement after observing the committee reviewed comments on its consultation from June. Indeed, the consultation underscored that the banks are exposed to high-risk virtual currencies, and should have to hold a capital that should be equivalent to the exposure amount. Such digital assets include Bitcoin and other altcoins.

Basel Committee faced criticism

Under the proposal made by the banking standard-setter, if a bank is having an original exposure to crypto assets worth $100, it must have a minimum capital of $100. Following the proposal, a forum of some of the major banks globally opposed the requirement. Such banks include, JP Morgan Chase & Co., and Deutsche Bank. The banks forum underscored that such measures are overly conservative. Moreover, the banks believe that such steps could preclude banks involvement in the world of cryptocurrency.

Source: Banking regulators will review proposed capital requirements

Banking regulators will review proposed capital requirements - Click To Share

Other recent press releases

*This is a free press release. All upgraded press releases are ad-free!

Maximize Your Audience Reach With These 13 Lead Generation Platforms

Businesses rely on effective sales trajectory management to close deals. The first step in this process is lead generation, which is considered one of the most critical aspects in business development. Lead generation is the backbone of all sales. It is a way of producing prospective clients for your business and capturing their interest and

Energy drinks recalled in Canada because of high levels of caffeine

Photo illustration T&E Imports and GPAE Trading Corp. are recalling G Fuel brand Energy Drinks because of high levels of caffeine. Too much caffeine can cause severe disturbances to the heart and nervous system. According to the recall posted by the Canadian Food Inspection Agency (CFIA), the recalled products have been sold nationally in Canada

Zuckerburg Reveals Meta Quest 3 Days Before WWDC – CNET

We finally know more official details about Meta’s next $500 VR headset and how it will aim to compete with Apple. Scott Stein Editor at Large I started with CNET reviewing laptops in 2009. Now I explore wearable tech, VR/AR, tablets, gaming and future/emerging trends in our changing world. Other obsessions include magic, immersive theater