European Banks Face Large Capital Shortfall with Basel III Rules

European banks could need as much as 400 billion euros ($442 billion) in capital to comply with new rules aimed at making the global financial system better able to bear potential losses, a study commissioned by the European Union’s banking lobby showed.

Under the new rules, which are known as Basel III, an “output floor” would limit the extent to which a bank’s capital buffers, calculated according to the lender’s own risk models, can differ from levels where they would stand under more conservative standard models.

November 21, 2019 Reuters Article About European Banks Here: mobile.reuters.com/article/am…

In Bizarre Admission, ECB Warns Its Policies Threaten Financial Stability, Could Lead To A Crash www.zerohedge.com/markets/biz…

The Bank of International Settlements under Basel-III changed the status of gold as a reserve asset effectively on April 1, 2019. Gold used to be viewed by the banks as a risky asset and classified under “Tier-3”, which meant it was considered risky and could only be carried on the books at 50% of the market value for reserve purposes.

Track the ECB’s official balance sheet here: www.ecb.europa.eu/pub/annual/…