Introduction: Why Basel Matters

Ricardo Gottschalk

Chapter 1 in The Basel Capital Accords in Developing Countries, 2010, pp 1-15 from Palgrave Macmillan

Abstract: Abstract The primary aim of banking regulation is to improve the stability of the financial system. In a strict sense, banking regulation is not neutral, since it constrains the space within which banks operate and has the potential to influence their operational and strategic decisions. In the process, bank performance is affected. Banking regulation may be focused solely on the banking system, or it can take a macro-prudential perspective, for example, by focusing on the interactions between macroeconomic events and bank balance sheets. By recognising the interaction between the macroeconomic and banking sector dimensions, it can act to minimise possible negative effects deriving from it. Furthermore, banking regulation may influence the macro-economy directly, for example, when it takes the forms of liquidity regulation and capital regulation. The latter function may reinforce the pro-cyclicality of bank credit and therefore affect the economy as a whole.

Keywords: Development Finance; Capital Requirement; Bank Credit; Foreign Bank; Leverage Ratio (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-27609-3_1

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230276093

DOI: 10.1057/9780230276093_1

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().