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Basel II: Principles of Avoiding Regulatory Failure

  • Joseph Tanega
Part of the Centre for the Study of Emerging Markets Series book series (CSEM)

Abstract

In this chapter I focus on the risk of regulatory failure in implementing the new Basel II requirements. It would be fair to say that whilst the intention of Basel II is to detect, manage and control the risk of capital inadequacy at the individual bank level, a large uncertainty looms over its successful implementation on a global basis. I shall draw attention to a range of possible unintended effects, to anticipate solutions which may be implemented by a variety of small and medium-sized financial institutions, especially in the emerging markets. The chapter is divided into three main sections: the private and public justification of the Basel II design; a theoretical model of regulatory design; and the major types of regulatory failure.

Keywords

Credit Risk Operational Risk Regulatory Failure Compliance Cost Advanced Approach 
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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Copyright information

© Joseph Tanega 2005

Authors and Affiliations

  • Joseph Tanega

There are no affiliations available

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