Banks overestimate Basel III’s impact on growth: regulators

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The Basel Committee on Banking Supervision's plans to raise capital ratios will have scant impact on potential growth, a group comprising Financial Stability Board and Basel Committee officials said on Wednesday.

A one percentage point hike to banks' target capital ratio would result only in a 0.04% drop in the annual output growth rate, the Basel-based Macroeconomic Assessment Group said. The new regulatory framework, known as Basel III, is expected to raise the floor for core tier one capital

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