Basel II is the second edition of the Basel Accords
, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision.
In general, not only have the Basel Accords
led banks to carry larger capital and liquidity cushions, they are leading to more international consistency over time in the measurement of bank capital and liquidity positions--a feature that makes it easier for bank creditors and other stakeholders to assess and compare the financial condition of individual banks.
This result is particularly important in light of Basel Accords
II and III and their more flexible regulations, which essentially tighten the equity requirements when the economy passes through a rough patch, as highlighted, for example, by Catarineu-Rabell, Jackson, and Tsomocos (2005).
* The Central Bank of Iran (CBI) has taken major steps to bring Iran's banking regulations in line with the latest Basel accords
and International Financial Reporting Standards (IFRS).
It is now planning to revamp its Public Credit Registry based on international best practice, harnessing the power of data from multiple sources to help monitor systemic risk, while responding to changes in regulations imposed by new global standards like the Basel Accords
. While the credit bureaus will continue to provide risk management and information services to the lending industry, the PCR will be used by Central Bank regulators to support its internal needs and responsibilities.
Among their topics are the history and philosophy of credit scoring, common methods and alternative methods for building scorecards, managing the data in scorecard development, measuring scorecard performance, implementation and areas of application, capital requirements and the Basel Accords
, securitization and the subprime mortgage crisis, and variable pricing and risk-based pricing.
(1) The aim would be to coordinate the implementation of the UNCITRAL Model Law on Secured Transactions (Model Law) (2) with the requirements enshrined in the Basel Accords
issued by the Basel Committee on Banking Supervision (BCBS).
(2011) and Gatzert and Wesker (2012), are limited to a qualitative comparison of the Basel Accords
and Solvency II.
Our results also indicate that the effect of capital regulation on bank risk and cost efficiency is different for each of the Basel accords
. Moreover, Basel II was more successful than Basel I in reducing the risk taken by banks, while its impact on the cost efficiency of banks was negligible.
Says HE Hamood Sangour Al-Zadjali, Executive President, CBO, "A well calibrated approach to banking sector reforms by the CBO such as adoption of risk-based supervision of banks, implementation of Basel accords
and the development of modern payment and settlement system has led to the emergence of a strong and resilient banking system over the years.
This study provides a brief historic and critical overview of the evolution of the Basel accords
and attempts an empirical analysis of the capital ratios of US banks.