Geithner Offers 5 Standards for International Bank Reform

Treasury Secretary Timothy Geithner
Treasury Secretary Timothy Geithner

U.S. Treasury Secretary Timothy Geithner offered his most extensive commentary to date on international banking reform Monday, in a remarks delivered at New York University's Stern School of Business.

Geithner offered five standards he says are needed for effective international banking reform, including requiring banks to maintain higher capital reserves—particularly against riskier assets—placing greater emphasis on common equity standards, requiring larger firms to hold higher capital ratios and enacting greater liquidity standards.

Geithner's remarks come on the heels of a new financial overhaul bill signed into law by President Obama last month, suggesting that administration now seeks to renew effiorts towards coordinating new international banking standards.