The plan by the Basel Committee on Banking Supervision to use private credit rating agencies to help set more risk-sensitive capital requirements for international banks is widely regarded as flawed -- but nobody seems to have a better idea.

The committee's plan, expressed in its June 3 proposal, "A New Capital Adequacy Framework," has come under increasingly frequent fire in the past two weeks. The assault began with a critique from the Shadow Financial Regulatory Committee, and it continued in speeches by H. Onno Ruding, vice chairman of Citibank N.A., and Robert W. Gillespie, chairman and chief executive of KeyCorp.

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