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Major changes are on the horizon for many banks around the world as result of Basel II, an international banking policy relating to bank capital reserve requirements. If you are not a banker, should you still be interested? The short answer is "Yes". Why? Because Basel II, in part, requires that banks measure credit risk more precisely and hold sufficient capital to protect the bank's stockholders from the credit risk in the portfolio. As banks comply, you may find that your cost of credit may increase. You should understand how they use their estimate of your default probability to set your loan rates. Additionally, you should anticipate the opportunity to extend ...