Basel II and Developing Countries: Sailing through the Sea of Standards
AbstractDespite 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 or so 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 (CRB) approach as a transition measure. The paper also makes proposals regarding a set of largely unresolved cross-border issues.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universidad Torcuato Di Tella in its series Business School Working Papers with number baseldc.
Length: 53 pages
Date of creation: 2004
Date of revision:
Contact details of provider:
Postal: Miñones 2177 - (1428) Buenos Aires
Web page: http://www.utdt.edu/listado_contenidos.php?id_item_menu=4994
More information through EDIRC
Other versions of this item:
- Powell, Andrew, 2004. "Basel II and developing countries : Sailing through the sea of standards," Policy Research Working Paper Series 3387, The World Bank.
- NEP-ALL-2004-07-26 (All new papers)
- NEP-REG-2004-07-26 (Regulation)
- NEP-SEA-2004-07-26 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Margaret J. Miller (ed.), 2003. "Credit Reporting Systems and the International Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262134225, December.
- Glaessner, Thomas & Kellermann, Tom & McNevin, Valerie, 2002. "Electronic security - risk mitigation in financial transactions : public policy issues," Policy Research Working Paper Series 2870, The World Bank.
- Petr Teply & Milan MatejaÅ¡Ã¡k, 2007. "Regulation of Bank Capital and Behavior of Banks: Assessing the US and the EU-15 Region Banks in the 2000-2005 Period," Working Papers IES, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies 2007/23, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Aug 2007.
- Saadaoui, Zied, 2009.
"Fonds propres réglementaires et stabilité bancaire dans les pays émergents
[Capital Requirements and Banking Stability in Emerging Countries]," MPRA Paper 25217, University Library of Munich, Germany.
- Andrew Powell, 2004. "Implications of Basel II for Latin America," Business School Working Papers, Universidad Torcuato Di Tella basel, Universidad Torcuato Di Tella.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicolás Del Ponte).
If references are entirely missing, you can add them using this form.