Business & Finance

FSB backs capital surcharges from 2016

ZURICH : Capital surcharges of up to 2.5 percent to make the world's top banks more resilient in future crises passed a

Published October 3, 2011 Updated October 3, 2011 04:47pm

1 min

By Muhammad Iqbal

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The Financial Stability Board, tasked by the Group of 20 leading economies (G20) to coordinate the global regulatory response to the financial crisis, backed a blueprint finalised by supervisors last month.

Chairman Mario Draghi confirmed banks will be subject to capital surges of between 1 and 2.5 percent from 2016, dousing speculation the plan would be watered down.

Svein Andresen, secretary general of the FSB, also said it would announce a successor to Draghi at the G20 summit in Cannes in November.

Bank of Italy Governor Mario Draghi is stepping down as FSB chairman because of his appointment as European Central Bank president from next month.

The Canadian government is pushing Bank of Canada Governor Mark Carney as a candidate to head the Financial Stability Board, Finance Minister Jim Flaherty said on Monday.

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