Basel experts agree asset securitisation treatment

The knotty credit risk problem posed by asset securitisation, where a bank pools loans and other credits to its customers and issues new securities against the pool, was the last major outstanding issue with the Basel II accord, a set of risk-based rules on bank protective capital aimed at making the world’s banking system safer.

Technical experts with the Capital Task Force, the senior sub-grouping of the Basel Committee on Banking Supervision, the body that in effect regulates international