Basel III may squeeze corporate credit, says Fitch

By Tom Porter
04 Nov 2013

Europe’s biggest banks have been shifting their exposures from corporate to sovereign debt as a result of Basel III’s more stringent capital rules, a report by ratings agency Fitch shows.

Basel’s new capital and liquidity rules do not come into force until 2019, but in the two year period after they were finalised in December 2010, Europe’s 16 global systemically important banks (G-SIBs) increased their total exposure to sovereign debt by €550bn, or 26%. That compares to a ...

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