Over the weekend, the oversight body of the Basel Committee on Banking Supervision announced a strengthening of bank capital requirements that will be presented to the Seoul G20 Leaders summit in November.  The package of reforms will increase the minimum common equity requirement from 2% to 4.5%.  In addition, banks will be required to hold a capital conservation buffer of 2.5% to withstand future periods of stress bringing the total common equity requirements to 7%.  These risk based capital ratios, as well as additional capital in the form of a countercyclical buffer and a non-risk based leverage ratio, will be phased in over time during a lengthy transition period.  “Systemically important” financial institutions are likely to be required to hold still additional capital, subject to a further ongoing review.  All of these requirements are subject to legislative and/ or regulatory action in the countries that govern the activities of banks within their jurisdictions.  National implementation by member countries will begin on January 1, 2013.  Member countries must translate the rules into national laws and regulations before this date. Basel Release.