Newsletter March 2011: Basel III’s economic impact will be limited, says OECD

PARIS – A study of the likely macroeconomic impact of the Basel III capital rules, undertaken by economists at the Organisation for Economic Co-operation and Development (OECD), the Paris-based policy think-tank, broadly backs up the controversial conclusions of bank regulators. The OECD analysis suggests an average impact on annual GDP growth in the range of minus 0.05 to minus 0.15 percentage point during a five-year period, on average for the US, Japan and the Euro area.