SANTA ROSA -- The Basel Committee on Banking Supervision, an international forum for standardization on bank rules, has approved increasing the risk-based ratio for financial institutions from the current 8 percent to about 10.5 percent over the next several years.
“I think it is a good thing, I think banks should hold more capital,” said Tom Duryea, president and chief executive officer of Summit State Bank in Santa Rosa. “If you have to carry more capital you will not have the returns, but you will not have the risk.”
In the North Bay, locally-based banks are all well above the minimum ratios to be considered well capitalized.
Westamerica, headquartered in San Rafael, has $5.9 billion in assets and a risk-based capital ratio of 15.79 percent.
Luther Burbank Savings has $3.5 billion in assets and 15.9 percent ratio.