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The Regulatory Framework Of Trade Finance: From Basel I To Basel Ii

Author

Listed:
  • Claudia Gabriela BAICU

    (Faculty of Marketing and International Affaires)

Abstract

The global crisis revealed several weaknesses in the international framework of banking regulation. Consequently, the Basel Committee on Banking Supervision (BCBS) proposed a package of measures to strengthen the resilience of the banking sector. Besides the positive effects they have on financial stability, the new regulatory provisions affect the ability of banks to provide trade finance. Therefore, the banking industry considers that regulators have not taken into account the low-risk profile of activity. Starting from this premise, the paper consists of three parts. In the first part, the role and objectives of the BCBS are presented; the second part is designed to review the most important trade instruments and to underline the tendencies in trade finance; finally, the last part highlights the regulation of trade finance under the Basel I, Basel II and Basel III regimes, and some unintended consequences of the Basel III framework.

Suggested Citation

  • Claudia Gabriela BAICU, 2011. "The Regulatory Framework Of Trade Finance: From Basel I To Basel Ii," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 2(3), pages 39-50.
    • Handle: RePEc:ris:sphecs:0142
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    References listed on IDEAS

    as
    1. Mr. Thomas William Dorsey & Mika Saito & Armine Khachatryan & Ms. Irena Asmundson & Ioana Niculcea, 2011. "Trade and Trade Finance in the 2008-09 Financial Crisis," IMF Working Papers 2011/016, International Monetary Fund.
    2. Auboin, Marc, 2010. "International regulation and treatment of trade finance: What are the issues?," WTO Staff Working Papers ERSD-2010-09, World Trade Organization (WTO), Economic Research and Statistics Division.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Basel III; trade finance; global crisis; regulatory framework of trade finance; international trade;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • 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

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