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Regulatory push could provide risk-taking 'incentives'

Global regulators could end up pushing banks to take more risk, if capital requirements on the industry do not distinguish between lower and higher risk business, a report has said.

Credit Suisse, the Swiss bank, has warned that the decision by some regulators to start judging their countries' banks on the basis of a simple leverage ratio could encourage the industry to direct their capital towards higher margin and riskier products.

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