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Article: Mortgages: Basel brush.
- Article from:
- Money Marketing
- Article date:
- September 22, 2005
CopyrightCOPYRIGHT 2005 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Andrea Tryphonides finds option divided on the benefits of Basel Two
As the anniversary of M-Day approaches, the Council of Mortgage Lenders reminds us that Basel Two is less than 18 months away.
Basel Two is designed to produce a closer alignment of capital and risk but the CML says some believe that releasing regulatory capital for lenders will have major implications for pricing, industry consolidation and competition.
But to what extent has this been overstated? For some types of lending, including residential mortgages, the release of regulatory capital should be considerable. Many commentators see this as the basis for significant ...