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Basel III Is a Grand Compromise, Not a Bold Initiative

  • Dimitris N. Chorafas
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

Damaged by the Great Depression — though not by a self-inflicted injury, as happened in 2007 — banks used the capital they obtained from the Reconstruction Finance Corporation (RFC)1 to redress their balance sheets rather than lending. Global banks in the USA, the UK, Germany, France, Belgium and the Netherlands repeated that practice with the lavish amount of money they received from governments during the recent economic crisis. And Japanese banks have done the same, on and off since the early 1990s.

Keywords

Equity Capital Leverage Ratio Capital Ratio Credit Institution Capital Adequacy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 10.
    D. N. Chorafas, Sovereign Debt Crisis and the New Normal, Paigrave Macmillan, Basingstoke, 2011.CrossRefGoogle Scholar
  2. 11.
    GAAP and IFRS have significant differences, but there are other standards as well as IFRS versions. The French, for example, have one that is not totally compatible with what the IASB has designed. D. N. Chorafas, IFRS, Fair Value and Corporate Governance: Its Impact on Budgets, Balance Sheets and Management Accounts, Butterworth-Heinemann, London/Boston, 2005.Google Scholar
  3. 12.
    D. N. Chorafas, IFRS, Fair Value and Corporate Governance: Its Impact on Budgets, Balance Sheets and Management Accounts, Butterworth-Heinemann, London/ Boston. 2005.Google Scholar

Copyright information

© Dimitris N. Chorafas 2012

Authors and Affiliations

  • Dimitris N. Chorafas

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