Asia’s risk professionals warn of unintended consequences of Basel III


The Basel III rules might cause banks to cut back lending and reduce the size of their balance sheets, worsening the economic slowdown, caution risk professionals in Asia-Pacific. A number of other unintended consequences could also emerge – for instance, a battle for retail deposits and a lack of global consistency, they add.

The comments come one year after the Basel Committee on Banking Supervision published its final rules on capital and liquidity last December. While regulators have set an

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