Magazine

Table: Seeds of a Revolt


The so-called Basel 2 rules proposed for banks are drawing fierce opposition

THE RULES WOULD...

-- Force banks to measure credit risk more accurately

-- Allow big banks to use their own internal risk-management systems

-- Take into account perils such as computer failure and fraud

-- Require banks to disclose more info about risks

BUT CRITICS COMPLAIN THEY WOULD ALSO...

-- Give big, sophisticated banks an advantage over smaller rivals

-- Make lending to small companies more expensive

-- Exaggerate the business cycle, making booms more robust but recessions deeper

Data: Bank for International Settlements, Risk Management Assn., Center for the Study of Financial Innovation


Steve Ballmer, Power Forward
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