Short-termism in bank credit was catapulted by the credit-risk (avoiding) weighted capital requirements. And no one said a word.

In 1988 with the Basel Accord, Basel I, the risk weight for the sovereign (government bureaucrats) was set at zero while the risk weight for the private sector (the citizens) was set at 100 percent.

And in 2004, with Basel II, the private sector was also split up into 20, 50, 100 and 150 percent risk weights.

The mother of all distortions on bank credit allocation ensued.

The last time I checked, in 2007, it was not even an issue for CFA. Is it a CFA issue now?