The forest of Basel III has too many trees

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Karel Lannoo
Financial Markets, CEPS Commentaries, Promoted on Publications home page
10 February 2011
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In this new Commentary, CEPS Chief Executive Karel Lannoo surveys the radical shift in bank capital requirements confirmed by the new Basel III Accord, with its focus on more and better quality capital, especially for the large banks. He finds, however, that the new framework is becoming very complex, and asks the big question that emerges: how does one determine when a bank is effectively Basel III-compliant, as some will soon start to claim.