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

Maximilian Hall

Banca Nazionale del Lavoro Quarterly Review, 2001, vol. 54, issue 217, 111-179

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.

Keywords: Bank; Banking (search for similar items in EconPapers)
JEL-codes: F23 G21 G28 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (2)

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