The Basel Committee on Banking Supervision issued proposals for the financial industry that include increased capital requirements and a tightening of the definition of acceptable capital. The committee's recommendations are influential but not binding, although many nations will use them as a guideline. "The capital and liquidity proposals will result in more resilient banks and a sounder banking and financial system," said Nout Wellink, chairman of the Basel Committee. "They will promote a better balance between financial innovation and sustainable growth." Read the news release from the Bank of International Settlements.