Capital market evidence regarding the implementation of the Basle Accord of 1988 : discretionary national policy considerations /
| Main Author: | |
|---|---|
| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1992.
|
| Subjects: | |
| Online Access: | Link to OAKTrust copy |
| Abstract: | The Basle Accord of 1988 was an international risk-based bank capital regulatory agreement. Its goals were to reduce both risk in the international banking system and competitive inequality arising from differences in supervisory requirements among nations. A central concern in the Basle Accord achieving its goals is that the framework allows for a degree of national discretion in the way in which it is applied. This study, by examining announcements regarding U.S., U.K., Japanese, and Canadian regulator's discretionary rules, seeks to determine if allowing national discretion in implementation has compromised the Accord's goals. We find that, generally, one nation's banks can benefit vis-a-vis other nations' banks the less restrictive their capital definitions, i.e., allowing the full range of Tier 2 elements to count as capital, not restricting the types of financial instruments chat can be used in raising capital, allowing all relevant revaluation reserves to count as capital, and having lower asset risk weightings. However, the only two areas of national discretion with the potential to compromise the Accord's goals appear to be the allowable components of Tier 2 capital and regulators imposing higher than required capital- to - assets ratios. Moreover, our results indicate systematic risk increased in three of the four countries studied, however, the exact cause of the risk increase is not transparent. |
|---|---|
| Item Description: | Typescript (photocopy). Vita. "Major subject: Finance." |
| Physical Description: | viii, 116 leaves ; 29 cm |
| Bibliography: | Includes bibliographical references. |