Basel II to boost both large and small banks' loan prices

The prices of some loan products for retail and middle-market corporate clients will almost certainly rise when banks implement the Basel II capital Accord in 2006, according to speakers at Risk 's Capital Allocation 2002 USA conference this morning.

Bankers at small regional or sub-regional banks fear that Basel II will give their larger rivals, which will use the advanced internal ratings-based (IRB) approach to calculate regulatory capital, a pricing advantage. But speakers on today’s opening panel on Basel II’s different ramifications for large and small banks said the big institutions will not be able to undercut small banks on prices due to a regulatory capital advantage.

The products that will see a rise are those that banks

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