Regulators looking to rein in the sort of risk-taking that caused the last financial crisis reached a compromise in Switzerland yesterday that more than doubles Cheap Jordan Shoes capital requirements for the world’s banks while giving them as long as eight years to comply. The Basel Committee on Banking Supervision will require lenders to have common equity equal to at least 7 percent of assets, weighted according to their risk, including a 2.5 percent buffer to withstand future stress. Banks that fail to meet the buffer would be unable to pay dividends, though not forced to raise cash. The definitions Air Jordan 2010 of what counts as capital and how risk is assessed have also been tightened. Some banks, such as Bank of America Corp. and Citigroup Inc., will be restricted in how much cash they can return to shareholders and pay their employees in years to come. Others, like Deutsche Bank AG, have already announced plans to raise additional capital. “These are big changes in capital requirements,” said James Wiener, the New York-based Michael Jordan Shoes head of finance and risk practice at Oliver Wyman, a management-consulting firm. “There’s a long period of adjustment, which takes off some pressure. But still, who wants to own a bank that can’t pay dividends for three years?” Minimum Ratios Banks will have less than five years to comply with the minimum ratios -- 4.5 percent common equity and 6 percent Tier 1 -- and until Jan. 1, 2019, to meet the buffer requirements, the Basel board of governors said in a statement yesterday. Tier 1 capital, whose definition has been narrowed by the Basel committee, includes common equity and perpetual preferred stock. Banks are currently required to have common equity equal to 2 percent of total assets and 4 percent Tier 1 capital. The committee also gave banks until the end of 2017 to comply with the tighter definitions of capital and said that a new short-term liquidity standard wouldn’t be implemented until the beginning of 2015. While a separate long-term liquidity rule has been shelved under pressure from the banking industry, the short-term rule was expected to go into effect earlier. The two liquidity rules would require banks to hold enough cash and easily cashable assets to meet liabilities. “Extending these deadlines -- liquidity, buffers, capital definitions -- should be a relief to banks,” said Frederick Cannon, an analyst at Keefe, Bruyette & Woods in New York. BofA, Citigroup Of the 24 U.S. banks represented on the KBW Bank Index, seven including Bank of America and Citigroup would fall short of the new ratios based on calculations using the revised definitions of capital, Cannon said in a Sept. 10 report. “The new standard is 7 percent, and that’s very high,” said Scott Talbott, senior vice president at the Washington- based Financial Services Roundtable, which lobbies on behalf of U.S. banks. “It will curb lending. The stronger the banks, the weaker the economic recovery will be.” Air Jordan 5 Air Jordan 6 Air Jordan 7 Air Jordan 8