A committee under the auspices of the Bank for International Settlements on Thursday unveiled a draft proposal to change the method it uses to calculate banks' capital adequacy ratios.
The Basel Committee on Banking Supervision sets the capital adequacy ratio for banks operating internationally at 8 percent. While it will keep that minimum requirement intact, it is considering adopting one of two new calculation methods that would more accurately reflect the risks banks face.
Capital adequacy ratios, required of banks in more than 100 countries, are considered the benchmark for measuring a bank's soundness.