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Bank Capital Race Not Enough for Basel as Nordics Break Away

The Basel Committee on Banking Supervision’s new head says it’s dangerous to rely on reported capital ratios as a defense against lender insolvency.

William Coen, secretary general of the committee, says bigger buffers won’t be enough to protect the financial system from another crisis unless national regulators are relentless in policing banks. The comments come as Scandinavia breaks away from the pack in revealing banks’ individual risk profiles after finding that Basel’s capital disclosure rules aren’t enough.