Basel shadow banking rules leave industry in the dark
The step-in risk concept may need a total overhaul to be fit for purpose as the UK goes its own way
The Basel Committee will need to clarify whether it views the risk of a bank stepping in with support for a shadow banking entity as a threat to the bank's capital or liquidity, after prompting confusion with a consultation that closed in March.
"In our view, this proposal lacks clarity, transparency and focus, and ignores the fact that 'step-in' during the recent financial crisis was largely limited to singular events or certain investment structures," said the Institute of International
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