Bank rules just keep getting weirder and weirder

Image source: L-Bank

The latest round of banking guidelines have gotten so complex that there may need to be another round to explain them.

In the five years since the global financial crisis, the Basel Committee has held a series of summits in an attempt to establish practices that will avoid another scenario in which banks take too much risk and wind up with not enough cash to cover losses in a downturn.

In doing so, however, the committee has made capital rules so convoluted that it may need to convene again just to clarify what it did with the latest proposals, banking analysts say.

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