The Basel Committee on Banking Supervision's proposed guidelinesfor dealing with weak banks could harm small institutions,recommending a risk-based capital requirement for all, the World Council of Credit Unions said in a Sept. 19 commentletter.

The Basel Committee on Banking Supervision's proposedSupervisory Guidelines for Identifying and Dealing with WeakBanks, aconsultative document released for comment in June,provides regulators with guidance for identifying and interveningwith struggling financial institutions.

World Council decried Basel language that said all financialinstitutions, regardless of size, should be subjected to the samebasic regulations, including risk-based capital requirements.

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