Basel III Credit Risk Framework Overcharges, Posing Threat to Financial Stability.
The article discusses three essays that look at problems with the current rules for measuring credit risk in banking. The first essay shows that the rules for leasing loans might be too strict. The second essay suggests a new way to calculate how much money banks might lose during a downturn. The third essay points out that the rules for how risky assets are might need to be updated because they haven't changed since the financial crisis.