Abstract
As is well known, both Basel I and Basel II were designed by regulators from developed economies to meet the main perceived regulatory challenges they and their largest banks faced. Basel II contains a number of positive features, particularly in the standardised approach. From the perspective of developing countries, for example, the removal of the OECD/non-OECD distinction and the reduction of the excessive incentive toward short-term lending are positive. More generally, Basel II attempts to better align regulatory capital to risk, which — if well done — could help accomplish a desirable objective.
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Griffith-Jones, S. (2010). Basel II: Regulatory Gaps, Pro-Cyclicality and Bank Credit Levels to Developing Countries. In: Gottschalk, R. (eds) The Basel Capital Accords in Developing Countries. Palgrave Macmillan, London. https://doi.org/10.1057/9780230276093_7
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DOI: https://doi.org/10.1057/9780230276093_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-30780-7
Online ISBN: 978-0-230-27609-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)