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Banks' equity - "Basel III costs 46 000 jobs"

Published: July 21, 2010; 00:00 · (Vindobona)

The stricter rules for the equity of banks will reduce lending by up to 20 percent, says the Institute for Advanced Studies (IHS) in Vienna.

Banks' equity - "Basel III costs 46 000 jobs" / Picture: © Vindobona.org

That could “cost” 46,000 jobs.

More stringent capital requirements by the Basel rules III would affect the real economy of Austria, these are the findings of a study by the IHS. The banks will decrease their lending by up to 20 percent, if they struggle to cover their increased capital requirements. Economic growth in the short term (one year) would decrease by 1.7 percent,…

This article includes a total of 352 words.

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