Basel III: To lend or not to lend

Is the new agreement too lax a timetable for the banks to comply with?

Given increasing signs the US economy is slowing and the Bank of England’s recent admission its earlier growth estimates for UK Plc were too optimistic, debate continues to rage over whether the Basel III framework – governing the capital and liquidity buffers banks must carry – is so stringent it may eventually tip the global economy into a more general slowdown. Commentators and analysts were quick to point out updated proposals announced in July had been watered down because of those fears. While most people will be unfamiliar with the mechanics of Basel III its importance cannot b...