In Brief: Basel to Unveil Revised Capital Standards

The Basel Committee for Banking Supervision plans to propose revised international capital standards Thursday in London.

The proposal was originally slated to be unveiled on April 9, but was delayed when German regulators raised last-minute objections over the capital proposed for some real estate lending.

The Basel Committee is currently headed by Federal Reserve Bank of New York President William McDonough, who pledged last September to revamp the 1988 risk-based capital standards. In the last 10 years, banks have found ways to sidestep the rules, securitizing assets that require large capital reserves and holding assets with low capital requirements. That has led many regulators, including Mr. McDonough, to question whether assets being sold are riskier than those left on the balance sheet.

The Basel Committee is an offshoot of the Bank for International Settlements in Basel, Switzerland.

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