Global bank operators and regulators agree to new capital reserve guidelines

Major bank operators and senior regulators have agreed a new deal which will see banks hold more capital in reserve in a bid to prevent another economical downturn. Experts say the rule, known as Basel III, should help banks to absorb losses in future crises without needing to turn to the taxpayer for help. Low levels of capital relative to assets were believed to be one of the major factors behind the last global recession.