Basel Pushes Risk Realism as Draghi Prepares to Buy ABS
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As Mario Draghi and Mark Carney campaign to revive the asset-backed securities market, Wayne Byres wants to make sure banks keep their feet on the ground.
For Byres, secretary general of the Basel Committee on Banking Supervision, the bottom line is that banks’ risks must be covered by capital. That’s proving a challenging line to toe as the committee comes under pressure from banks including Deutsche Bank AG and Barclays Plc that say its latest proposals are so strict they may hamper their participation in the market.