FX Week

Bank Of England Warns Against Risks Of Reducing Basle Capital Requirements

NEWS

LONDON--Banking regulators would take unjustifiable risks if they were to lower existing capital requirements for banks, Bank of England deputy governor David Clementi said last week.

Clementi, commenting on the current review of existing bank capital rules by the Basle Committee on banking supervision, said four of the 11 members of the Group of Ten (G10) leading industrial countries underwent banking crises in the 1990s.

He said that he did not find this statistic "particularly comforting".