With the West facing the prospect of a double-dip recession, growth will depend to a large extent on the ability of banks to lend. In its current guise, the new Basel Accord will greatly impact banks’ funding costs, hiking up the cost of trade credit and undermining cross-border business – potentially resulting in a new liquidity crisis. The score is currently: Basel III; Exporters Nil.
|This post was part of the special feature about Our Scariest Risks, published October 31, 2011. The feature also included these other risks:|