Preparing for take-off

Reaction to the Basel lll announcement of September 2010

On 12 September 2010 the Basel Committee announced broad agreement on a package that will significantly increase the capital and liquidity required by banks. The package has attracted huge interest around the world and maps an agreed flight-path for the sector for the next ten years.

The new requirements are a big step forward in the development of the post-crisis regime for banks and, through that, a step towards reducing the risk of a second severe market crisis. Many commentators suggest that the job has now been done and that the banks and regulators can turn their attention elsewhere. In our view this is far from the case.