Basel II likely to boost credit markets, says Fitch

Fitch senior director Kim Olson said there should be a shift away from bank loans, with more companies issuing bonds, especially if “there is investor appetite for such exposure”. Basel II aims to achieve a closer alignment between regulatory capital and underlying economic risk. Current Basel rules impose a flat 8% requirement for all corporate exposures, regardless of risk. Basel II, due for implementation in late 2006, proposes that the level of required regulatory capital should adjust t