Basle 2 'rules will leave banks short of capital'

SWITZERLAND - New rules on the amount of capital international banks must hold have been criticised as failing to meet necessary standards for the regulation of the global banking industry. It is suggested that banks will have an incentive to 'game' the rules and deliberately under-estimate the riskiness of loans in order to reduce the capital they must hold.

The proposed Basle 2 accord will leave banks short of capital to cover their risk exposures, according to the shadow financial regulator

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: