Resources for Basel II Capital Accord (Basel II)

ECB Wellink: Risks Of Financial Crisis Have Been Underestimated

www.fxstreet.com

The risks of a financial crisis have been underestimated and, while calm has returned, financial markets remain fragile, European Central Bank Governing Council member Nout Wellink said Wednesday.

Wellink also warned that a spillover of financial market turmoil into equity markets and the financial sector is still possible. He was speaking at a hearing in parliament on financial market turbulence.

In addition, if Basel II capital adequacy requirements for banks aimed at improving risk management had been implemented earlier, this would have partly prevented the current financial crisis, Wellink said.

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