If Thats The Good News

Markets seem to be quite happy about the new Basel rules. It is a positive in the longer term if the World's banking systems are sound and less levered. However, the medium term effects of this will likely be negative. Many European banks will need to raise equity, like Deutsche Bank is planning to do. Equity raises are a source of supply for global equity markets. Additionally, credit growth will likely be sluggish as banks try to lower their leverage ratios.

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