Support The Moscow Times!

Basel III Rules Criticized

The new Basel III banking rules are tailored to banks in developed countries and could freeze credit or promote bad practices in emerging economies, European Bank for Reconstruction and Development president Thomas Mirow said.

Basel III "can cause severe problems in financial systems that simply do not yet have stable sources of long-term funding," Mirow said in a speech at an EBRD conference in Astana, Kazakhstan, which was e-mailed Wednesday.

"It may force banks in these economies to either curtail long-term lending, with harmful consequences for growth, or to seek foreign sources of long-term funding," he said. This, "as we have seen, creates external vulnerabilities," he added.

(Bloomberg)

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.