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

NEW YORK - A leading US academic has hit back at claims Basel II has been a major contributory factor in the subprime crisis and has come out in staunch defence of the role it has played in limiting the severity of losses seen among investment banks.

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 complete a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here