Sunday, December 13, 2009

Basel Committee Divided On Counter-cyclical Bank Capital

Unresolved differences between central bankers and prudential supervisors mean the Basel Committee's forthcoming package of reform proposals will not include substantive detail on one of the most-discussed measures – a counter-cyclical capital buffer. At a crunch meeting in Basel on Tuesday and Wednesday, the committee had hoped to finalise proposals on five key areas - liquidity standards, a leverage ratio, capital quality, the resolution of "too big to fail" institutions, and the counter-cyclical buffer. But the meeting concluded without agreement on the last of these items, according to attendees.
From "Basel Committee divided on counter-cyclical capital" by Joel Clark and Duncan Wood, published on

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