Basel II could endanger stability if cuts in capital charges are too big, says UK central banker
Financial stability would be endangered if new capital adequacy rules meant large international banks saw a significant cut in the capital they have to set aside against the risks of banking, a senior UK central banker said in April.
Banks will be able to use their own internal measurements of risks, including operational risks, in the calculation of capital charges under Basel II. This is the new capital adequacy accord proposed by the Basel Committee of banking
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