Tighter capital rules for banks under Basel

The Basel Committee on Banking Supervision has proposed new rules and plans to introduce stricter limits on what counts as top-level-assets and on risk exposure from trading derivatives and securities by banks . Since the worst economic crisis after World War II, global regulators have been wrestling to increases supervisions of banks across the world. With the intention to reduce risks in financial system, the Group of 20 nations agreed early this year to maintain more and better quality capital in their banking systems.