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Westpac Says Some Basel Rules Flawed, May Constrain Lenders

Westpac Banking Corp., which stayed profitable during the financial crisis without a bailout, said some of the proposed capital and liquidity rules on banks worldwide are flawed and risk constraining Australian lenders.

The Basel Committee on Banking Supervision on July 26 agreed on a reform package that included a leverage ratio for banks globally that may become binding by 2018. The committee said it aimed to develop a non risk-based measure designed to help track the resilience of lenders.