The new regulations, called Basel III, would force banks to more than triple their current reserves and would be phased in from 2013...this additional reserve "help to ensure that banks maintain a buffer of capital that can be used to absorb losses during periods of financial and economic stress", said regulators.
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I believe that this would have a negative effect toward the recovering economy. Although there are many stimulus offered by the government to help businesses, it must be supported hand in hand with the FED's regulation. With this new bank regulation, entrepreneurs with great ideas may not be able to take out loan to promote their business expansionary opportunities.
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