Keene Communications’ Financial Services team have been working hard with the Mathematics Department at the University of Manchester to look at the Basel Regs. This paper is an early (redacted) draft of the paper.
The idea behind the paper is that the current regulations do not properly address uncertainty. While columnists like John Kay have argued that it is impossible to regulate in such an uncertain environment, we believe that a treatment can be applied that allows us to understand uncertainty. This should help regulators and banks alike.
This paper is only in draft – we and the University of Manchester team would appreciate feedback and interest.