Basel II SME solution close

Global banking regulators are optimistic they can resolve by mid-June the vexed question of the treatment of lending to small to medium-sized enterprises (SMEs) under the Basel II capital Accord.

The politically sensitive issue has dogged the development of the risk-based Accord and helped delay its coming-into-force until at least late 2006, or nearly three years later than originally planned (Risk December 2001).

The German government, which faces parliamentary elections in September

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