Easing banks' capital rules creates new worry

Seventeen years on from the global financial crisis, regulators are cutting red tape for their banks in a bid to keep lenders competitive and stimulate their economies.

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The Trump administration is leading the charge, including with measures that will reduce the amount of capital lenders need to set aside. Lowering capital requirements is worrying some observers that the US has triggered a global throwback from regulations designed to keep financial systems safer, just as chatter about market bubbles and financial stability risks intensify.

So how do bank capital requirements in the major markets stack up, and which lenders might emerge winners?

The global landscape

At the highest level, each country’s regulators should align with the Basel regulatory regime agreed after the 2008 global financial crisis. That's designed to ensure supervisors worldwide apply similar minimum capital standards so lenders can survive loan losses during tough times. It suggests a level playing field.