BIS paper proposes simpler Basel capital framework
Authors say ‘capital stack’ is too complex and does not provide enough resilience to some shocks
The Basel III capital framework is too complex and fails to provide enough resilience in some critical areas, a paper published by the Bank for International Settlements argues.
The authors – who include current and former senior officials at the BIS – say the complexity of the framework and shortcomings in how it prepares banks for certain shocks mean the framework struggles to achieve its key objectives.
In the paper, Claudio Borio, Rodrigo Coelho, Fernando Restoy and Nikola Tarashev outline an
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