The process of risk-weighting assets will become even more crucial to calculating bank capital adequacy under Basel III than it is already. Which is why there is growing dissent about the unexplained discrepancies between how different banks are measuring the same risks.
The eurozone sovereign debt crisis has not just affected national treasuries, but also European supranationals and government-related entities. Philip Alexander hears from a range of larger and smaller borrowers across the eurozone and beyond.
In response to the suggestion – put forward by bankers and central bankers in the UK – that a temporary cut in capital adequacy requirements would stimulate new lending and economic growth, The Banker has simulated how a 1% lower Basel requirement might affect various major world economies.