>>5245020 lb

https://www.silverdoctors.com/gold/gold-news/gold-to-be-declared-tier-1-asset-under-new-basel-iii-rules/

Follow the money people (or barberous relic according to Greenspan)

Gold to be Declared Tier 1 Asset Under New Basel III Rules

Banks are required to increase their capital assets

https://corporatefinanceinstitute.com/resources/knowledge/finance/basel-iii/

What is Basel III?

The Basel III accord is a set of financial reforms that were developed by the Basel Committee on Banking Supervision (BCBS), with the aim of strengthening regulation, supervision, and risk management within the banking industry. Due to the impact of the 2008 Global Financial Crisis on banks, Basel III was introduced to improve the banks’ ability to handle shocks from financial stress and strengthen their transparency and disclosure.

Basel III builds on the previous accords, Basel I and II, and is part of a continuous process to enhance regulation in the banking industry. The accord prevents banks from hurting the economy by taking more risks than they can handle.

1. Minimum Capital Requirements

The Basel III accord raised the minimum capital requirements for banks from 2% in Basel II to 4.5% of common equity, as a percentage of the bank’s risk-weighted assets. There is also an additional 2.5% buffer capital requirement that brings the total equity to 7%. Banks can use the buffer when faced with financial stress, but doing so can lead to even more financial constraints when paying dividends. As from 2015, the Tier 1 capital requirement increased from 4% in Basel II to 6% in Basel III. The 6% includes 4.5% of Common Equity Tier 1 and an extra 1.5% of additional Tier 1 capital. The requirements were to be implemented starting in 2013, but the implementation date has been postponed several times, and banks now have until March 31, 2019, to implement the changes.