Basel chief says 'excellent progress' on bank reform

The Basel Committee on Banking Supervision has made "excellent progress" on finalising a reform programme for the world's banks in the wake of the economic crisis, its chairman said Tuesday.
Nout Wellink was speaking at a press conference after the committee held a day-long meeting to put finishing touches to a package announced last month.
The new rules, known as Basel III, are scheduled to be phased in from 2013 with banks asked to hold higher reserves by January 1, 2015.
The key element known as core Tier 1 capital will be raised to 4.5 percent from two percent.
In addition, by January 1, 2019, banks will be required to set aside an extra buffer of 2.5 percent to "withstand future periods of stress", bringing the total reserves required to 7.0 percent.