Netherlands Bank’s Knot says regulation is inadequate


Intensifying financial regulation will help cure some of the banking sector's ailments, but more needs to be done, said Klaas Knot, president of the Netherlands Bank and former chair of the Basel Committee on Banking Supervision's risk management and modelling group, in a speech on November 12.

Knot told a conference in Amsterdam that banks will become healthier as regulation addresses both their tendency to over-leverage and the shortage of capital in the sector, but this will come at a cost. F

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