Basel II experts shift focus to securitisation after SME solution
Experts working on the Basel II bank capital rules are focusing on the technically difficult issue of asset securitisation after agreeing a solution to the politically sensitive problem of how lending to small- and medium-sized enterprises (SMEs) should be treated under the pact, international regulators said in early July.
Solution
The SME solution is along lines previously foreshadowed by regulators. It centres on allowing banks to set aside on average 10% less protective capital
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