Banks May Face Tougher Risk-Concentration Limits

Basel Committee suggests curbing how much business big global banks do with each other.

Global regulators are seeking to toughen curbs on how much business large global banks can do with each other as part of a push to prevent lenders from keeping risks too concentrated.

A “key lesson from the crisis is that material losses in one systemically important financial institution can trigger concerns about the solvency of other SIFIs, with potentially catastrophic consequences for global financial stability,” the Basel Committee on Banking Supervision said today in a statement on its website.

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