Fixing A Big Mistake in Risk-Based Capital Rules

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Fixing A Big Mistake in Risk-Based Capital Rules

Bank sign on a traditional building facade. We are observing a great debate between the US banking regulators who wish to impose new, so-called “Basel III Endgame” rules to significantly increase bank capital, on one side, and the banks who argue they already have more than enough capital, joined by various borrowing groups who fear loans to them may be made more expensive or less available, on the other. It has been described as “the biggest f…