Banks told to double their cash reserves - papers

Financial regulators have reached a deal to force global banks to double the spare cash they hold in the biggest shake-up since the economic crisis nearly brought down the system.

Mervyn King, Governor the Bank of England, is one of 27 "heads of supervision" who on Sunday helped agree on a deal in Basel, Switzerland, writes the Telegraph. Details of the Basel III regulations were unveiled on Sunday night in a move designed to prevent banks from running out of liquidity as they did in the autumn of 2008. The new rules, to be phased in between 2015 and 2018, demand that banks hold 4.5% of common equity and retained earnings. The current minimum for core Tier 1 capital is 2%. As regulators gathered in Basel to thrash out the deal on new capital reserves, Deutsc...