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Article: One Basel leads to another.(One Basel leads to anothere)
- Article from:
- The Economist (US)
- Article date:
- May 20, 2006
CopyrightCOPYRIGHT 2006 Economist Newspaper Ltd. 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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The difficult business of drawing up new international banking rules
AS BANKS get bigger, they also become smarter. That, at any rate, is the theory underpinning a new set of rules on risks and capital for banks around the world, formally called the "International Convergence of Capital Measures and Capital Standards" and informally "Basel 2". The code has been drafted by the Basel Committee on Banking Supervision, an offshoot of the Bank for International Settlements (BIS), which supports and co-ordinates the work of leading central banks around the world. It is a gentlemen's agreement among leading regulators which all countries with international banks are ...