An Overview of the Basel Capital Accords
In this chapter, we provide a brief overview of the defining features of the Basel Capital Accords and their perceived shortcomings. We also, look at the role that the Basel Committee on Banking Supervision (BCBS) has to play in determining international banking regulation. The importance of capital adequacy standards is also discussed.
1.1 Background to the Basel Capital Accords
Despite their susceptibility to failure, banks fund projects and allow investment that, in turn, stimulates economic growth. Such failure can trigger economic downturns that have negative implications. As a consequence, it is important that banks are safe, and are soundly managed at all times. Banking regulation is ...
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