Boards should not escape the Basel shake-up

In parallel with Basel II's emphasis on risk measurement and supervisory review, a crucial aspect of regulation should be to ensure that banks have effective governance structures, this article says. Regulation that is forever chasing what market practitioners are doing is unlikely to bring financial stability.

First published in the UK edition of the Financial Times, 12 August by David Mayes and Luigi Passamonti. David Mayes is an adviser to the board of the Bank of Finland and Luigi Passamonti

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