Loading…

Basel II: panacea or a missed opportunity?

At the end of June 2004, the Basel Committee on Banking Supervision (henceforth, the 'Basel Committee') finally issued the 'New Capital Accord' (henceforth called "Basel II"), following endorsement by G10 bank supervisors. This Accord replaces the original accord (now t...

Full description

Saved in:
Bibliographic Details
Main Author: Maximilian Hall
Format: Default Preprint
Published: 2004
Subjects:
Online Access:https://hdl.handle.net/2134/336
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1818174986243801088
author Maximilian Hall
author_facet Maximilian Hall
author_sort Maximilian Hall (1247469)
collection Figshare
description At the end of June 2004, the Basel Committee on Banking Supervision (henceforth, the 'Basel Committee') finally issued the 'New Capital Accord' (henceforth called "Basel II"), following endorsement by G10 bank supervisors. This Accord replaces the original accord (now termed "Basel I") agreed in July 1988 and implemented by most major banks around the World since 1993. Publication follows years of exhausting work by the Basel Committee to improve upon the original in the light of market developments, advances in risk management and revealed deficiencies in the operation of the current scheme (which will remain in place until end-2006 for all banks and, for many, very much longer). This article traces the evolution of Basel II from its inception in June 1999 to agreement on its final form, focussing on the period since the publication of a revised set of proposals for a new Accord in January 2001. The impact of the consultation entered into with interested parties (there were three formal rounds of consultation) on the final shape of the Accord is explored, as is the role played by the Quantitative Impact Studies (particularly, "QIS3") in the moulding of Basel II. Finally, the agreed package of proposals is assessed from a "cost-benefit" standpoint, and outstanding concerns are identified. In particular, the question of whether or not the Committee has done enough to try and ensure that its ultimate objectives are realised is addressed, as is the possibility that it overlooked a golden opportunity to more fully embrace market discipline within the supervisory process.
format Default
Preprint
id rr-article-9493454
institution Loughborough University
publishDate 2004
record_format Figshare
spelling rr-article-94934542004-07-01T00:00:00Z Basel II: panacea or a missed opportunity? Maximilian Hall (1247469) Other economics not elsewhere classified Other law and legal studies not elsewhere classified untagged Law Economics not elsewhere classified At the end of June 2004, the Basel Committee on Banking Supervision (henceforth, the 'Basel Committee') finally issued the 'New Capital Accord' (henceforth called "Basel II"), following endorsement by G10 bank supervisors. This Accord replaces the original accord (now termed "Basel I") agreed in July 1988 and implemented by most major banks around the World since 1993. Publication follows years of exhausting work by the Basel Committee to improve upon the original in the light of market developments, advances in risk management and revealed deficiencies in the operation of the current scheme (which will remain in place until end-2006 for all banks and, for many, very much longer). This article traces the evolution of Basel II from its inception in June 1999 to agreement on its final form, focussing on the period since the publication of a revised set of proposals for a new Accord in January 2001. The impact of the consultation entered into with interested parties (there were three formal rounds of consultation) on the final shape of the Accord is explored, as is the role played by the Quantitative Impact Studies (particularly, "QIS3") in the moulding of Basel II. Finally, the agreed package of proposals is assessed from a "cost-benefit" standpoint, and outstanding concerns are identified. In particular, the question of whether or not the Committee has done enough to try and ensure that its ultimate objectives are realised is addressed, as is the possibility that it overlooked a golden opportunity to more fully embrace market discipline within the supervisory process. 2004-07-01T00:00:00Z Text Preprint 2134/336 https://figshare.com/articles/preprint/Basel_II_panacea_or_a_missed_opportunity_/9493454 CC BY-NC-ND 4.0
spellingShingle Other economics not elsewhere classified
Other law and legal studies not elsewhere classified
untagged
Law
Economics not elsewhere classified
Maximilian Hall
Basel II: panacea or a missed opportunity?
title Basel II: panacea or a missed opportunity?
title_full Basel II: panacea or a missed opportunity?
title_fullStr Basel II: panacea or a missed opportunity?
title_full_unstemmed Basel II: panacea or a missed opportunity?
title_short Basel II: panacea or a missed opportunity?
title_sort basel ii: panacea or a missed opportunity?
topic Other economics not elsewhere classified
Other law and legal studies not elsewhere classified
untagged
Law
Economics not elsewhere classified
url https://hdl.handle.net/2134/336