Basel II and pro-cyclicality

Risk staff
01 Nov 2002

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Allocating credit to those areas promising the highest return relative to the risk is the central economic function of financial markets. This drives dynamic economic efficiency and prevents the massive waste of resources caused by misdirection of society’s limited quantity of savings. Obviously such market decisions are never perfect in hindsight. Experience shows, however, that open and competitive financial markets are the best means of maximising such allocational efficiency.

One

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]