The Basel Committee on Banking Supervision recommends that supervisors should apply the minimum capital ratio of 8 percent to all internationally operating banks on both a solo and consolidated basis. In a merger or acquisition, any current or consequential cross-shareholding should also be eradicated in order to avoid double counting of capital.
Availability of additional capital We also have to assess the ability of the major shareholders of a merged entity to provide additional capital should the bank or banking group experience financial difficulties. 4.6  Risk concentration  Safeguarding against excessive concentration of risk is one of the most important components in any system for the supervision of banking groups.