Basel II capital requirements are "not a contributing factor to subprime crisis"

NEWS

William Chambers, associate professor of finance at Boston University was reacting to recent claims in the US press that Basel's capital requirements have encouraged banks to securitise mortgage portfolios and move them off-balance-sheet to avoid having to hold regulatory capital against them.

"That assessment is purely and simply misguided; if anything the opposite is the case. Basel has not encouraged more securitisation but rather discouraged it. Under Basel I once securitisation is comple

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