Basel II costs could force banks out of system, says CSFB official

BASEL II UPDATE

NEW YORK -- The cost of complying with the Basel II bank capital rules will be substantial, and could push some commercial banks out of the financial system, a senior official at investment bank Credit Suisse First Boston (CSFB) said in late July.

CSFB head of strategic risk management D Wilson Ervin estimated the cost of meeting the new capital standards at $25 million to $50 million for a medium-sized bank, and perhaps two to three times that amount for a large bank.

"That’s a considerable

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