In detail, the current minimum requirement for total assets remains unchanged at 8% of risk weighted assets, but the institutions that now keeps the 2% as common equity in the current regime of Basel 3 will have 4.5% of this capital of quality than that, and the Tier One, that the index of the core capital of high quality inclusive of equity, from 4% to 6 percent. In practice, the first direction of the new agreement is to increase the quality of assets in the portfolios of banks.
Secondly, we will have a buffer (buffer) capital "stock" of an additional 2.5% more and high quality, however this may also be increased in economic phases particularly critical, therefore to increase the Institute's financial stability.
However, the application of these requirements is expected very gradually, and not to adversely affect the tentative signs of recovery in progress, is not immediately trigger a further tightening of credit to the private and business.
The first changes are a gradual raising of capital requirements from 2013, until completion of the structure in 2020 and exclusion from the banking assets of state aid (like the Tremonti Bonds to understand each other) only by 2023.
said in a simplistic way (economists are horrified when you simplify too much) we have to treat a patient, but we fear that the drugs not hold, then while we make the recipe and then we'll see. This
wait, formed by reactions of fear of credit crunch by banks, it is the part of the agreement that leaves more perplexed.
escapes the sense of a more regulation over ten years of a financial market that has some very fast times and that, God forbid, could go into crisis and recover three more times between now and 2020. not forget that the financial crisis originated in a short period after all, with an exponential multiplication of toxic assets and that in twenty months or less burned billion euro in value around the world .
On the other hand, the intervention Basel Three is gentle on the face sheet, as is the ability to take credit for banks, forcing them to set aside money and not invest it with the same system of risk weights, well known by our companies, which raises the rating of a customer above everything, creating a real barrier dividing between those who have more money and that you do not. A further restriction of credit to businesses at this time, would have a catastrophic effect on the possibility of economic recovery and companies surviving the first credit crunch.
Tempering time the entry into force of the third version of the expected (the conditional is a must) to avoid having immediate impact on the financing companies. In fact, this writer doubts on this subject, as with the experience of many decades of living, interacting with the banks, it is likely that some further tightening in a very short time if there is not immediate.
not forget that, in substance, against the outcry of thousands of entrepreneurs just squeezed past credit hardening, the substance of the response of the bankers was about the inevitability of a Darwinian selection of the economy, as if all those who were in difficulty, they deserve to reckless conduct their business in the years before. Of course, among many, certainly had some lived on the shoulders of his company, but make every lump is throwing baby and bathwater. Preparing
therefore a likely tightening of criteria for granting credit by banks is therefore recommended caution, especially for SMEs with low capitalization, have budgets that are structurally unsuitable to be judged by the strict mathematical procedure of the rating.
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