European banks might need approximately EUR 400 billion in capital to adhere to the new rules for a better capability of the international financial system to take in possible losses, according to a study commissioned by the European Banking Federation.
The new guidelines, called Basel III, specify that the Minimum Capital Requirement would limit the extent to which a bank'' s capital reserves computed on the basis of a bank'' s own danger models may differ from levels according to a lot more conservative designs.
The purpose of Basel III is to increase banks' ' ability to endure financial turmoil.
A research study by management consultancy Copenhagen Economics, commissioned by the European Banking Federation and the National Banking Group lobby, evaluates the impact of Basel III rules. prior to they get in into force in Europe.
The study also alerted of the influence on the real economy as the new rules would increase the expense of loans to organisations and homes.