In essence, the Basel II framework seeks to limit banks’ risk-taking behaviour by making it more expensive and thus less attractive. Against this backdrop, recent proposals to prohibit certain risky activities altogether pursue a more radical course.
Amando M Tetangco, Jr: The growing significance of rural banking in the Philippines Keynote address by Mr Amando M Tetangco, Jr, Governor of the Central Bank of the Philippines (Bangko Sentral ng Pilipinas), at the inaugural reception of RBAP Board of Directors and Officers, Manila, 8 July 2008.