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Article: Basel II's Bad All Around, Terrible for U.S. Banks.
- Article from:
- American Banker
- Article date:
- July 7, 2005
- Author:
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Basel II is an inordinately complex set of risk-based capital rules being developed by international bank regulators to apply to the largest U.S. and foreign banks. The more I try to understand the rationale for Basel II the less persuaded I am that there is one.
International regulators developed risk-based capital rules, dubbed Basel I, in the late 1980s to apply to banks of all sizes. They offered two primary justifications for Basel I: that capital rules should apply uniformly to banks throughout the world in order to level the playing field; and that capital requirements should correspond to the level of risk in individual banks.
One could hardly ...
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... ... II Introduced in 1988 by the Basel Committee of the Bank of International Settlements ... 100 nations, the original Basel Capital Accord is a credit ... overall amount of capital that a bank must hold. Whereas banks traditionally sought competitive ...
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