Lack of transparency in designing and pricing of products and services and selling them to inappropriate customers could expose banks to litigation, reputational risks besides making  BIS central bankers’ speeches  3  them liable for supervisory action. There should be no unreasonable post sale barriers if the customers wish to change product or bank.
In order to obtain more precise weightings, the Basle Committee is willing to consider less arbitrary ways to determine credit risks. But it is unrealistic to expect that internationally applicable risk weightings can be established, that accurately reflect banks’ risks at all times and under all conditions. Compromises in this respect are inevitable. Credit risk models 11.