Basel III: Banks fret about return on equity
The wait for the numbers is over, but arguments about the impact of increased minimum capital levels are just beginning. Regulators hope the new rules – which require a tripling of equity capital compared with pre-crisis levels, according to some reckonings – will make the industry sturdier. Bankers fret it will make them less attractive to investors, by cutting their return on equity (ROE).
"I don't think equity markets are going to accept a significantly lower ROE from the banking sector
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