Non-G-10 Countries and the Basle Capital Rules: How Tough a Challenge is it to Join the Basle Club?

Claudia Dziobek, María Nieto and Olivier Frecaut

No 1995/005, IMF Policy Discussion Papers from International Monetary Fund

Abstract: The 1988 Basle Capital Accord has introduced the norm of a risk-based capital ratio of 8 percent. It was negotiated among the G-10 countries to strengthen their international banks’ capital base while simultaneously levelling the playing field for competition. Since 1988, a large number of non-G-10 countries, although not members of the “Basle Club,” have introduced similar risk-based capital ratios, hoping to achieve similar effects in terms of enhanced safety and competition in their banking markets. This paper explains why the endeavor failed in most cases and discusses what the required conditions would be for effective implementation of the Basle rules beyond the G-10 countries.

Keywords: PDP; Basel; bank; Basle capital accord; G-10; rule; Basle capital standard; risk weight; bank supervisor; reporting practice; Basle capital ratio calculation; Capital adequacy requirements; Bank supervision; Loans; Financial statements; Foreign banks; Global (search for similar items in EconPapers)
Pages: 22
Date: 1995-03-01
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=1481 (application/pdf)

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:imf:imfpdp:1995/005

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Policy Discussion Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().