International bank regulators finalized changes Thursday that will greatly diminish the role of external ratings agencies in weighting the risk of securitized assets in capital requirements.

The Basel Committee on Banking Supervision's move capped years of work on how to correct the significant flaws of the 2004 Basel II securitization framework. Those rules relied on external ratings agencies and assigned "excessively low" risk weights to highly-rated securities, while assigning unnecessarily high risk weights to low-rated senior securitization exposures, according to the committee.

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