Capital requirements ‘no threat’ to banks

DUBLIN stockbrokers said yesterday the new Basel III capital requirements being introduced to prevent another global banking collapse will post no serious challenges for Irish banks.

Earlier this year the Financial Regulator set out a basic Tier 1 requirement for Irish banks of 7%, which the banks have to meet by the end of December 2011.

The new requirements, known as Basel III, will demand that in the future banks hold capital totalling at least 7% of their risk-bearing assets, but a long lead-in time eased fears that lenders will have to rush to raise capital.