Financial Stability News

News about financial stability, central banking and theory of money

Negative impact of Basel 3 thiny

As FT has already reported today, the Basel Committee have released a new report showing that the negative impact of higher capital charges under Basel 3 will be small. The costs are estimated to below 0,5 % of GDP, whereas the benefits could easily be over 2,5 %. But as usual, more studies are required to test the robustness of the results. The report is fairly short (38 p), but would probably not be a good weekend read. Go for the Vanity Fair article on EW.


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