Basel II and Developing Countries: Sailing through the Sea of Standards
Despite recently announced delays, Basel
II - the new standard for bank capital - is due to be
completed this year for implementation in the 13 Basel
Committee member countries by the end of 2006. Should the
other 170 plus member countries of the World Bank also adopt
Basel II? Basel II was not written with developing countries
in mind, but that does not necessarily mean that there is
nothing in it for developing countries or that it can be
ignored. Basels I and II represent a wide Sea of Standards.
This paper suggests five alternative island-standards and
five navigational tools to help countries choose their
preferred island within the sea. It is suggested that for
some developing countries the standardized approach will
yield little in terms of linking regulatory capital to risk,
but that countries may need many years of work to adopt the
more advanced internal rating-based approach. The paper then
proposes a centralized rating-based approach as a transition
measure. The paper also makes proposals regarding a set of
largely unresolved cross-border issues.
Saved in:
Bibliographic Details
| Main Author: |
Powell, Andrew |
|---|
| Language: | English
en_US |
|---|
| Published: |
World Bank, Washington, D.C.
2004-09
|
|---|
| Subjects: | ASSET RETURNS,
AUDITING,
AUTONOMY,
BALANCE SHEET,
BANK CAPITAL,
BANK LOANS,
BANK RATINGS,
BONDS,
CAPITAL ADEQUACY,
CAPITAL MARKETS,
CAPITAL REQUIREMENT,
CENTRAL BANKS,
COLLATERAL,
CONNECTED LENDING,
CONSOLIDATED SUPERVISION,
CONSOLIDATION,
CORPORATE FINANCE,
CREDIT RISK,
DEBT,
DEFAULT RISK,
DEVELOPING COUNTRIES,
ENFORCEMENT POWERS,
EQUITY INVESTMENTS,
EXPOSURE,
FINANCIAL INSTITUTIONS,
FINANCIAL SECTOR,
FINANCIAL STABILITY,
INNOVATION,
INTEREST RATE,
LEGAL FRAMEWORK,
LIQUIDITY,
LIQUIDITY RISK,
MARKET DISCIPLINE,
MARKET RISKS,
MATURITY,
MORTGAGES,
OPERATING INCOME,
OPERATIONAL RISK,
PORTFOLIOS,
PROBABILITY OF DEFAULT,
PRUDENTIAL REGULATIONS,
RATING AGENCIES,
REGIONAL BANKS,
REGULATORY APPROACHES,
RISK MEASUREMENT,
RISK MITIGATION,
RISK WEIGHTED ASSETS,
SUBSIDIARIES,
SUBSIDIARY,
SYSTEMIC RISK, |
|---|
| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5120277/basel-ii-developing-countries-sailing-through-sea-standards
https://hdl.handle.net/10986/14146
|
|---|
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
|---|
