I updated this post, as discussions on the leverage ratio still suffer from a poor understanding of this solvency measure. See my post on this odd proposal by three Dutch professors, who basically want to turn back time to the Basel II (not III) era, and allow banks to borrow money to increase their capital… Read More Leverage Ratio Eye-openers, updated
Reuters reported on a leaking source from the European Banking Authority who mentioned that Europe has set itself a “completely illusionary” timetable for the next round of bank health checks. An interesting Catch 22 thus ensues: adhering to a strict timetable would lead to cutting corners, thus endangering the reputations of European bank supervisors. Not-adhering… Read More The European Bank Asset Quality Review, an inconvenience, but for whom?
Lots of twitter-folks, especially law shunning economists, have only a slight clue as to what the Basel III implementation in Europe actually entails. So, here’s my briefings on Basel III. Note, I write this post as an economist, who, after a decade of academia subjected himself to five years of a regulators’ commitment to help… Read More Basel III’ is Europe – Part I