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.
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dig-okr-10986141462024-08-08T17:31:41Z Basel II and Developing Countries: Sailing through the Sea of Standards Powell, Andrew 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 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. 2013-06-24T16:42:51Z 2013-06-24T16:42:51Z 2004-09 http://documents.worldbank.org/curated/en/2004/09/5120277/basel-ii-developing-countries-sailing-through-sea-standards https://hdl.handle.net/10986/14146 English en_US Policy Research Working Paper;No.3387 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, D.C. |
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Banco Mundial |
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DSpace |
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Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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dig-okr |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
| language |
English en_US |
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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 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 |
| spellingShingle |
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 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 Powell, Andrew Basel II and Developing Countries: Sailing through the Sea of Standards |
| description |
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. |
| topic_facet |
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 |
| author |
Powell, Andrew |
| author_facet |
Powell, Andrew |
| author_sort |
Powell, Andrew |
| title |
Basel II and Developing Countries: Sailing through the Sea of Standards |
| title_short |
Basel II and Developing Countries: Sailing through the Sea of Standards |
| title_full |
Basel II and Developing Countries: Sailing through the Sea of Standards |
| title_fullStr |
Basel II and Developing Countries: Sailing through the Sea of Standards |
| title_full_unstemmed |
Basel II and Developing Countries: Sailing through the Sea of Standards |
| title_sort |
basel ii and developing countries: sailing through the sea of standards |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2004-09 |
| url |
http://documents.worldbank.org/curated/en/2004/09/5120277/basel-ii-developing-countries-sailing-through-sea-standards https://hdl.handle.net/10986/14146 |
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AT powellandrew baseliianddevelopingcountriessailingthroughtheseaofstandards |
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1807157717095153664 |