National regulators must revise Basel II

National regulators need only make a small change to the Basel II framework to avoid future government recapitalisations. It is essential that they do so, say Samuel Sender and Noel Amenc, two researchers at France's EDHEC business school.

At a time when banks more than ever need to lend, we are instead seeing them hoard because of investors' fixation on capital ratios.

This is, at least in part, down to the set up of the Basel II framework.

Risk-sensitive regulations, upon which Basel II is

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