Axel Weber slams ‘simplistic’ leverage ratio
Former Bundesbank president says Basel III has not made the financial system better
The chairman of UBS has dismissed the leverage ratio as "simplistic" and claimed the Basel III capital rules have done little to make financial markets safer.
"I think we have improved massively on capital, liquidity and resolvability, but I do feel that some of the developments are going in the opposite direction of what banks require," said Axel Weber, a former president of the German Bundesbank.
"For example, the increasing focus on just very simplistic leverage ratio calculations on what a
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