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The New Basel Capital Accord and Developing Countries: Issues, Implications and Policy Proposals

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  • Stephany Griffith-Jones
  • Stephen Spratt

Abstract

This paper argues that, if implemented in its current form, the new Basel Capital Accord will adversely effect developing sovereigns, corporates and banks wishing to borrow in international markets. This impact will result from the major banks' lending patterns being altered by the adoption of internal ratings based approaches, leading to a significant reduction of bank, and/or a sharp increase in the cost of international borrowing for many developing countries.

Suggested Citation

  • Stephany Griffith-Jones & Stephen Spratt, 2002. "The New Basel Capital Accord and Developing Countries: Issues, Implications and Policy Proposals," WIDER Working Paper Series DP2002-36, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-36
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2002-36.pdf
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    References listed on IDEAS

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    1. Powell, Andrew, 2002. "A capital accord for emerging economies?," Policy Research Working Paper Series 2808, The World Bank.
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    Cited by:

    1. Barbara Stallings & Rogerio Studart, 2002. "Financial Regulation and Supervision in Emerging Markets: The Experience of Latin America since the Tequila Crisis," WIDER Working Paper Series DP2002-45, World Institute for Development Economic Research (UNU-WIDER).
    2. Stallings, Barbara & Studart, Rogério, 2003. "Financial regulation and supervision in emerging markets: the experience of Latin America since the Tequila crisis," Series Históricas 7798, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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