The agreement at Basel will require banks in due course to have safer levels of capital.
There were two main problems with the proposals. The first is requiring a sudden surge in new capital now might just delay or slow recovery, as the easiest way for banks to meet the requirements is to lend less. The Basel answer is to delay the introduction of the new demands by up to eight years.
The second is the new rules require banks to hold more government loans or sovereign debt, at a time when the quality of sovereign debt in some countries is being questioned for good reasons. Governments may like the idea of banks having to lend them money, but it only delays crisis and painful adjustment in countries that are borrowing too much. It does not solve their underlying problem.
Basel will also encourage the shift of some financial activities into non banks. Do not expect too much from Basel. It has not guranteed an end to crises! Meanwhile, watch out for another bout of Euro blues, as the numbers within the weaker countries of the Euro zone still look worrying.