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The basle Committee's proposals for a new capital adequacy assessment framework: a critique

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  • Maximilian J.B. Hall

    (Loughborough University, Department of Economics, Loughborough (Great Britain))

Abstract

In June 1999, the Basle Committee of Banking Supervisors issued a consultative paper proposing the introduction of a new framework for the capital adequacyassessment of internationally-active banks operating in the G10 area. The initiative reflected a desire to address some of the long-acknowledged deficiencies in the current regime, operating under the guise of the Basle Capital Accord since 1988, and to accommodate recent market developments (especially in risk management) and financial innovations. This article critically analyses the new proposals, as amended in January 2001, providing a "cost-benefit" analysis of the proposed framework and assessing the extent to which the flaws in the current assessment regime would be overcome.

Suggested Citation

  • Maximilian J.B. Hall, 2001. "The basle Committee's proposals for a new capital adequacy assessment framework: a critique," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 54(217), pages 111-179.
    • Handle: RePEc:psl:bnlaqr:2001:21
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    Cited by:

    1. Franz R. Hahn, 2003. "Die neue Basler Eigenkapitalvereinbarung ("Basel II") aus makroökonomischer Sicht," WIFO Monatsberichte (monthly reports), WIFO, vol. 76(2), pages 137-150, February.
    2. Franz R. Hahn, 2003. "The New Basel Capital Accord (Basel II) from a Macroeconomic Point of View," Austrian Economic Quarterly, WIFO, vol. 8(2), pages 51-63, June.

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    More about this item

    Keywords

    Bank; Banking;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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