Big banks facing tougher measures

Frankfurt: Bundesbank board member Andreas Dombret expects capital buffers of two to three percentage points for banks deemed “too big to fail” because their collapse could endanger the wider financial system and hurt economic growth.

Regulators “should start with only those institutions that are indisputably of global systemic relevance. I expect this to be a group of some 25 to 30 banks — not more and not less,” Dombret said. “I expect that at the end of the day the amount of additional capital required from a [systemically important financial institution] will be related to its systemic importance and will, in all likelihood, lie somewhere between 2 and 3%.”