Basel III might force banks to trim balance sheets

10/14/2010 | Reuters

Basel III rules are expected to inflate banks' risk-weighted assets, forcing some financial institutions to reduce their balance sheets to comply. UBS, Deutsche Bank, Credit Suisse and Barclays, which have large trading-asset books, are expected to be most affected by the change. The banks have a number of ways to mitigate the effect, such as opting for exchange-traded derivatives instead of over-the-counter derivatives, according to Reuters.

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Reuters