Fresh scrutiny for Europe’s SME capital carve-out
FSB’s Knot urges conformity with global standards
A controversial European let-off for banks lending to smaller companies may be a waste of time, the Financial Stability Board has concluded.
In a new consultation, the FSB finds Basel III’s tougher post-crisis capital standards have not reduced lending to small and medium-sized enterprises (SMEs), and that Europe’s decision to diverge from those standards appears to have had no clear benefit for borrowers.
Speaking today at a press conference to launch the consultation, Klaas Knot – the FSB
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