The oversight body of the Basel Committee on Banking Supervision has agreed a set of measures to strengthen quality of capital, increase liquidity requirement, instill leverage ratio as a backstop to Basel II, and mitigate cyclicality mainly by encouraging forward-looking provisioning practice. The complete press release is below.
The agreements were reached among central bank governors and heads of supervision from 27 countries.
The missing part I guess is the lack of attention for often poor supervisory quality and accountability of bank supervisors. We have learned from recent Indonesia-related bank failures that supervisors are to blame, unfortunately to a considerable degree.