1/27/2010

Banking-sector analysts are looking into how proposals from the Basel Committee regarding liquidity, capital and leverage standards will mesh with regulators' efforts to bring "shadow banks" into a new regulatory regime. "Regulators hope to strike the right balance here to ensure reasonable return and reduce the shift toward a 'shadow' banking system exempt from the Basel standards," said Karen Shaw Petrou of Federal Financial Analytics. The committee's proposed leverage standards favor regional banks, such as Zions Bancorp, Regions Financial, Fifth Third Bancorp and Huntington Bancshares, analysts say, because they have already enhanced their capital levels.

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