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Risk Management by the Basel Committee: Evaluating Progress made from the 1988 Basel Accord to Recent Developments

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  • Ojo, Marianne

Abstract

This paper traces developments from the inception of the 1988 Basel Capital Accord to its present form (Basel II). In highlighting the flaws of the 1988 Accord, an evaluation is made of the Basel Committee’s efforts to address such weaknesses through Basel II. Whilst considerable progress has been achieved, the paper concludes, based on one of the principal aims of these Accords, namely the management of risk, that more work is still required particularly in relation to hedge funds and those risks attributed to non bank financial institutions.

Suggested Citation

  • Ojo, Marianne, 2008. "Risk Management by the Basel Committee: Evaluating Progress made from the 1988 Basel Accord to Recent Developments," MPRA Paper 10051, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:10051
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    References listed on IDEAS

    as
    1. Coroneo, Laura & Pastorello, Sergio, 2020. "European spreads at the interest rate lower bound," Journal of Economic Dynamics and Control, Elsevier, vol. 119(C).
    2. Claudio Borio & Mathias Drehmann & Dora Xia Author-X-Name_First: Dora, 2019. "Predicting recessions: financial cycle versus term spread," BIS Working Papers 818, Bank for International Settlements.
    3. Marc Saidenberg & Til Schuermann & May, "undated". "The New Basel Capital Accord and Questions for Research," Center for Financial Institutions Working Papers 03-14, Wharton School Center for Financial Institutions, University of Pennsylvania.
    4. Power, Michael, 2003. "The invention of operational risk," LSE Research Online Documents on Economics 21368, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Sara Mikou & Younès Lahrichi & Said Achchab, 2024. "Liquidity Risk Management in Islamic Banks: Review of the Literature and Future Research Perspectives," European Journal of Studies in Management and Business, EUROKD, vol. 29, pages 56-73.
    2. Ardianto Ardianto & Nadia Anridho & Suham Cahyono & Abu Hanifah Md. Noman Alam & Iman Harymawan, 2024. "The role of risk management committee on the relationship between corporate carbon emission disclosure and capital structure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2127-2158, May.
    3. Baolei Qi & Mohamed Marie & Ahmed S. Abdelwahed & Ibrahim N. Khatatbeh & Mohamed Omran & Abdallah A. S. Fayad, 2023. "Bank Risk Literature (1978–2022): A Bibliometric Analysis and Research Front Mapping," Sustainability, MDPI, vol. 15(5), pages 1-27, March.
    4. Balogh Peter & BOLOCAN DRAGOS-MIHAIL, 2010. "The Management Of Credit Risk According To Internal Ratings- Based Approach," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 665-671, December.

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    More about this item

    Keywords

    risk; management; regulation; banks; Basel; Committee;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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