BCBS said central bank members have been asked to approve certain trades
The Basel Committee on Banking Supervision
has taken the unusual step of warning banks that they should
not conduct transactions designed to reduce their capital
commitments under the Basel rules.
The Basel Committee said in a short
statement on Thursday that some of its central bank members
have received requests from banks to approve complex
transactions designed to cut their regulatory capital
The Committee said: "These include, for
example, proposals for structured transactions that result in
deferred tax assets being reclassified as a way of seeking to
avoid their deduction from the calculation of regulatory
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