RiskNews review
Regulation
Basel II could worsen economic downturns to a greater extent than initially thought, according to a working paper issued last month by the Bank for International Settlements (BIS). The BIS paper says Basel II could force banks to cut back lending during an economic downturn, a problem referred to as procyclicality and one that, until now, the Basel Committee on Banking Supervision has denied would be a problem. The Basel Committee says the procyclicality issue will be
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