Commentary: Risk-weighting assets raises concerns

04/2/2013 | Wall Street Journal, The

Sheila Bair, former chairwoman of the Federal Deposit Insurance Corp., writes that the practice of banks using risk weighting to determine capital ratios can be misleading and unreliable. "Regulators need to use a simple, effective ratio as the main determinant of a bank's capital strength and go back to the drawing board on risk-weighting assets," Bair writes.

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Wall Street Journal, The

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