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A Closer Look at Basel III Finds Cleaning Up Regulatory Reform Almost a Wash

Tuesday, July 5, 2011



Running Time: 00:07:12

Basel III decreases but does not eliminate systemic risk in the banking system, according to research by UC Berkeley business and finance professors. Furthermore, the UC Berkeley study suggests successful mortgage markets in Western Europe provide useful models to mortgage reform in the US and consequently, the elimination of Fannie Mae and Freddie Mac – absent in healthier markets – is vital to future recovery.
 
Basel III is a framework of global regulatory standards aimed at making the banking system more resilient and therefore more resistant to systemic risks.

Categories:  Haas Faculty & Research