Basel III – averting another financial crisis or protecting vested interests?

Critics of Basel III argue that the reforms don’t go far enough and will not be fully implemented until 2019 before which there may well be another crisis, more likely if the economy goes into a double dip recession. The main reform is a three-fold increase in capital reserve requirements. However, a three-fold increase on average tier 1 capital ratios of a mere 2% currently to cover against bankruptcy doesn’t bode much confidence in financial institutions with casino-like business models. Read more>>>