* Rules phased in reflecting different starting points
* Will result in significantly higher capital
* Not all countries will impose a bank tax
TORONTO, June 26 Some G20 countries will phase
in new bank rules faster than others, according to a draft
communique obtained by Reuters, which also agreed there are
alternatives to the bank tax to protecting taxpayers from bank
The Group of 20 emerging and advanced powers is due to
endorse in November new standards for bank capital, liquidity
and leverage known as Basel III and aimed at preventing another
global financial crisis.
The G20 originally pledged to implement the new rules by
the end of 2012, but the communique suggested a differentiated
"Phase-in arrangements will reflect different national
starting points and circumstances, with initial variance around
the new standards narrowing over time as countries converge to
the new global standard," a draft version of the communique
Banks have lobbied hard to water down the rules. They argue
overly stringent capital levels will crimp their ability to
lend and hamper the global economic recovery.
The G20 draft upholds the goal of starting to introduce
what it called "significantly higher" capital levels by the end
of 2012. However, it said countries will phase in the new
requirements "over a timeframe that is consistent with
sustained recovery and limits market disruption."
In order to set the transition horizon, an economic impact
assessment will be conducted by the Financial Stability Board,
comprised of G20 regulators and central banks, as well as the
Basel Committee on Banking Supervision.
The G20 draft includes broad guidance on the amount of Tier
1, or core capital, banks will eventually require.
The debate over a global bank tax is now officially dead,
with the draft stating bluntly: "Some countries are pursuing a
financial levy. Other countries are pursuing different
"We agreed the financial sector should make a fair and
substantial contribution towards paying for any burdens
associated with government interventions, where they occur, to
repair the financial system or fund resolution and recognized
that there are a range of policy approaches to this end," the
(Reporting by G20 team; Writing by Louise Egan, Editing by