Bank stocks rose in Europe and Asia as regulators gave firms more time than analysts expected to comply with stiffer capital requirements aimed at preventing future financial crises.
France’s Credit Agricole SA and Dexia SA led the Bloomberg Europe Banks and Financial Services Index. The benchmark was up 1.8 percent at 1:05 p.m. in London at a one-month high. The 224 member MSCI AC Asia Pacific Financials Index rose 1.7 percent at 6 p.m. Hong Kong time, set for its biggest gain since July 8.
At a meeting in Basel, Switzerland yesterday, regulators reached a compromise that more than doubles capital requirements for the world’s banks, while giving them as long as eight years to comply in full. Germany had sought to give firms a decade to make the transition, while the U.S., U.K. and Switzerland pushed for a maximum of five years.
Full story: Bank Stocks Climb as Basel Gives Firms Eight Years to Comply – Bloomberg