Banking body says Basel II will treat securitisation unfairly

On October 28, the Basel Committee on Banking Supervision published a working paper that provided a comprehensive guide to the treatment of securitisation under the standardised and internal ratings-based approaches of Basel II – that is, how much regulatory capital banks will have to set aside against securitised assets.

As things stand under Basel II, securitised debt, including instruments such as asset-backed bonds, will incur far higher risk weightings than corporate bonds carrying the

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