Basel II rules 'take account of small businesses'

European Central Bank governing council member Guy Quaden on Monday 17 May played down fears that small and medium-sized firms would suffer from the new rules on bank capital known as Basel II.

The Basel rules will revamp the way banks manage risk, but some analysts have said they could cause a reduction in lending to smaller firms, as these were riskier bets than large corporations.

Quaden, the Belgian central bank chief, said: "The new Basel rules take expressly into account the specificitie