Clementi-Basel Accord must avoid pro-cyclicality

UNITED KINGDOM - The world's banks and the financial system as a whole should make sure risk-sensitive capital requirements set out in the new Basel Accord don't aggravate cyclical economic downturns, Bank of England deputy governor David Clementi said on Apr 10.

Clementi, who is responsible for financial stability at the central bank, said that the new, more sensitive internal rating systems used by commercial banks shouldn't be 'point in time' but should instead take account of the long-run

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