Basel II will lead to more instability, critic argues
LONDON - The Basel II bank capital accord will result in more banking instability and more pro-cyclicality, where bank actions taken in response to solvency rules reinforce economic and market cycles, a leading critic of the accord said in October.
"Ironically, Basel II could have its greatest impact on banking flows to developing countries, countries not represented directly on the Basel Committee," said Persaud, who is also a managing director of US banking group State Street.
The Basel Committee on
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