Changes to Basel II will be “positive for banks’ creditworthiness”, says rating agency Moody’s.
In a special comment paper, the agency says amendments to the quality of capital and securitisation introduced to the EU Capital Requirements Directive – the European vehicle for Basel II implementation – are also a positive step for banks, being broadly based on the Basel Committee’s recommendations.
“We believe that the increased requirement for credit analysis for banks holding securitised exposures is going to be an important element of improved risk management, and should ensure that only banks with the necessary information and analytical tools hold securitised products,” says the paper.
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