Basle accord set to change banking landscape

SWITZERLAND - The small Swiss town of Basle will this week play host to what could go down in financial history as a momentous event: agreement in principle on new banking regulations.

Neither the location - the Bank for International Settlements' cylindrical modern offices - nor the complex subject matter are likely to excite many.

But the impact of the Basle II accord, as the agreement is known, will lead to a restructuring of the banking industry and, through changes in the cost of borrowing