Bank capital regulation in contemporary banking theory: a review of the literature
This paper reviews the theoretical literature on bank capital regulation and analyses some of the approaches to redesigning the 1988 Basle Accord on capital standards. The paper starts with a review of the literature on the design of the financial system and the existence of banks. It proceeds with a presentation of the market failures that justify banking regulation and an analysis of the mechanisms that have been suggested to deal with these failures. The paper then reviews the theoretical literature on bank capital regulation. This is followed by a brief history of capital regulation since the 1988 Basle Capital Accord and a presentation of both the alternative approaches that have been put forward on setting capital standards and the Basel Committee's proposal for a new capital adequacy framework.
|Date of creation:||Sep 2000|
|Date of revision:|
|Contact details of provider:|| Postal: Centralbahnplatz 2, CH - 4002 Basel|
Phone: (41) 61 - 280 80 80
Fax: (41) 61 - 280 91 00
Web page: http://www.bis.org/
More information through EDIRC
References listed on IDEAS
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.:
- Edward Simpson Prescott, 1997. "The pre-commitment approach in a model of regulatory banking capital," Economic Quarterly, Federal Reserve Bank of Richmond, issue Win, pages 23-50.
- Christian B. Mulder & Brieuc Monfort, 2000. "Using Credit Ratings for Capital Requirementson Lending to Emerging Market Economies; Possible Impact of a New Basel Accord," IMF Working Papers 00/69, International Monetary Fund.
- Yuk-Shee Chan & Stuart I. Greenbaum & Anjan V. Thakor, 2004.
"Is Fairly Priced Deposit Insurance Possible?,"
- Craine, Roger, 1995. "Fairly Priced Deposit Insurance and Bank Charter Policy," Department of Economics, Working Paper Series qt6dv142sd, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Matutes, Carmen & Vives, Xavier, 1995.
"Imperfect Competition, Risk Taking, and Regulation in Banking,"
CEPR Discussion Papers
1177, C.E.P.R. Discussion Papers.
- Matutes, Carmen & Vives, Xavier, 2000. "Imperfect competition, risk taking, and regulation in banking," European Economic Review, Elsevier, vol. 44(1), pages 1-34, January.
- S. Nagarajan & C. W. Sealey, 1997. "Can Delegating Bank Regulation to Market Forces Really Work?," New York University, Leonard N. Stern School Finance Department Working Paper Seires 97-8, New York University, Leonard N. Stern School of Business-.
- Stephanou, Constantinos, 1996. "Regulating market risk in banks : a comparison of alternative regulatory regimes," Policy Research Working Paper Series 1692, The World Bank.
- Arupratan Daripa & Simone Varotto, 1997. "Agency Incentives and Reputational Distortions: a Comparison of the Effectiveness of Value-at-Risk and Pre-commitment in Regulating Market Risk," Bank of England working papers 69, Bank of England.
- Holmstrom, Bengt & Tirole, Jean, 1993. "Market Liquidity and Performance Monitoring," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 678-709, August.
- Fries, Steven & Mella-Barral, Pierre & Perraudin, William, 1997.
"Optimal bank reorganization and the fair pricing of deposit guarantees,"
Journal of Banking & Finance,
Elsevier, vol. 21(4), pages 441-468, April.
- Fries,S. & Mella-Barral,P. & Perraudin,W.R.M., 1995. "Optimal Bank Reorganisation and the Fair Pricing of Deposit Garantees," Cambridge Working Papers in Economics 9417, Faculty of Economics, University of Cambridge.
- Freixas, Xavier & Gabillon, Emmanuelle, 1999.
"Optimal Regulation of a Fully Insured Deposit Banking System,"
Journal of Regulatory Economics,
Springer, vol. 16(2), pages 111-34, September.
- Xavier Freixas & Emmanuelle Gabillon, 1996. "Optimal regulation of a fully insured deposit banking system," Economics Working Papers 175, Department of Economics and Business, Universitat Pompeu Fabra.
- Freixas, X. & Gabillon, E., 1998. "Optimal Regulation of a Fully Insured Deposit Banking System," Papers 98.506, Toulouse - GREMAQ.
- Campbell, Tim S. & Chan, Yuk-Shee & Marino, Anthony M., 1992.
"An incentive-based theory of bank regulation,"
Journal of Financial Intermediation,
Elsevier, vol. 2(3), pages 255-276, September.
When requesting a correction, please mention this item's handle: RePEc:bis:biswps:90. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Beslmeisl)
If references are entirely missing, you can add them using this form.