New capital requirements adopted by the Basel Committee on Banking Supervision will not likely return the standalone financial strength of banks to pre-crisis levels in the short term, according to Moody’s Investors Service. Tobias Moerschen, v.p. and co-author of a report on the matter, acknowledged that “Basel 3 will be positive for bank creditors overall, as it will improve the resilience of the global banking system by adding sizeable capital and liquidity buffers,” but that several factors, including fragile economic recovery, skittish financial markets and new global risks will weigh on banks.
