The New Capital Adequacy Framework : Institutional Constraints and Incentive Structures /

This paper considers the implementation challenges facing the Basel Committee's new proposals on bank capital standards. When compared with the existing Capital Accord, the proposals represent a shift across two intersecting dimensions-regulatory versus economic capital, and rules-based versus...

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Autor principal: Karacadag, Cem
Altres autors: Taylor, Michael
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2000.
Col·lecció:IMF Working Papers; Working Paper ; No. 2000/093
Accés en línia:Full text available on IMF
Descripció
Sumari:This paper considers the implementation challenges facing the Basel Committee's new proposals on bank capital standards. When compared with the existing Capital Accord, the proposals represent a shift across two intersecting dimensions-regulatory versus economic capital, and rules-based versus process-oriented regulation. On minimum capital standards, the case for using external ratings may be stronger than has been recognized, given the divergences in the purpose and design of internal ratings. On supervisory review, ensuring comparability among supervisors and building supervisory capacity will present serious challenges. On enhancing market discipline, incentives for markets to exercise discipline will be required.
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Descripció física:1 online resource (40 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students