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Article: Basel-II: international competition issues.(Report)
- Article from:
- Atlantic Economic Journal
- Article date:
- December 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Atlantic Economic Society. 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 Perception of Basel-II
When discussing Basel-II (Basel Committee on Banking Supervision 2003), there are several sources of error in the common perception of the new regulatory framework. Most people think of Basel-II as a very restrictive set of rules, limiting the ability of banks to grant loans especially to small and medium enterprises and private customers. (Un-)fortunately, this is not true, because Basel-II contains some features, which are not generally known, preventing most of these effects. The bad reputation of Basel-II does not follow from sound knowledge of the rules, but from a "strategic misuse" of Basel-II by commercial banks (at least in ...