LONDON, April 15 Global regulators have eased a
rule aimed at curbing how much business a lender can undertake
with an individual customer in a bid to minimise fallout if the
customer goes belly up.
The Basel Committee of global banking regulators said on
Tuesday it had tweaked several aspects of its proposal to update
the measurement and control of so-called large exposures at
From 2019 banks will have to report any exposure that is
equivalent to 10 percent of the their capital base, up from the
5 percent initially proposed.
The overall limit of 25 percent remains unchanged but will
be based on a bank's Tier 1 capital holdings. Lenders feared it
would be based on a narrower core Tier 1 base.
A bank's exposure to one of the world's top 29 lenders that
are deemed to be globally systemically important will be limited
to 15 percent, at the top end of the 10-15 percent Basel had
(Reporting by Huw Jones, editing by Joshua Franklin)