Handbook of Safeguarding Global Financial Stability

Chapter 39

On the Role of the Basel Committee, the Basel Rules, and Banks’ Incentives

R. Ayadi

Centre for European Policy Studies, Brussels, Belgium

Outline

Introduction

The Evolving Role of the Basel Committee on Banking Supervision

Basel Capital Requirements as Essential but not Sufficient Regulatory Tool

From Basel I to Basel III: What Has Changed?

Basel I: The First Step Toward Banking Regulation

Basel II and Basel III: Does a Flexible and Sophisticated Approach to Banking Regulation Regulate Banks’ Incentives?

What are the Unresolved Flaws of Basel Regulations?

Basel Regulation, Incentives, and Role of Pillars 2 and 3

References

Abstract

In view of Basel regulation deficiencies and to address the regulatory gaps identified during the financial ...