Basel is putting prosperity on the line

摘要

AS the latest iteration of the rules from the Basel Committee on Banking Supervision (BCBS) is developed, not enough attention is being paid to the unintended consequences of new requirements on bank's risk strategies and, therefore, business prospects. This is a dangerous oversight. In the months following the most dramatic events of the financial crisis, regulators were faced with a dilemma: redesigning banking supervision to prevent similar catastrophes in the future, or letting financial agents find a new market equilibrium without additional intervention.