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Basel I, II and III: Did the Basel Regulations Work?

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Basel I, II and III: Did the Basel Regulations Work?
Basel I, II and III: Did Basel regulations work?

Major course assessment in Empirical Banking, Summer Term 2012, University of Constance; Lecturer: Prof. Moshe Kim

By: Kerstin King Daniel Boss Enrique R. Perezyera B.

Table of Contents
List of Abbreviations.......................................................................................................................... III List of Tables...................................................................................................................................... IV 1. 2. Introduction................................................................................................................................. 1 Rationale for Bank Regulation.................................................................................................. 1 2.1. Monetary and Financial Stability....................................................................................... 2 2.2. Efficient and Competitive Financial System ......................................................................2 2.3. Consumer and Depositor Protection.................................................................................. 3 Basel I........................................................................................................................................... 3 3.1. The Basel Committee on Banking Supervision ................................................................. 3 3.2. Capital Measures and Credit Risk (Weights)..................................................................... 4 3.3. Criticism............................................................................................................................. 7 Basel II......................................................................................................................................... 8 4.1. Pillar I: Minimum Capital Requirements ........................................................................... 8 4.2.


References: Basel Capital Accord. 1998. International Convergence of Capital Measurement an Capital Standards. http://www.bis.org/publ/bcbsc111.pdf (05.06.2012) Basel Committee on Banking Supervision reforms - Basel III. http://www.bis.org/bcbs/basel3/b3summarytable.pdf (05.06.2012) Basel Committee on Banking Supervision. 2009. History of the Basel Committee and its Membership. http://www.bis.org/bcbs/history.pdf (06.06.2012) Basel Committee on Banking Supervision. 2011. Basel III: A global regulatory framework for more resilient banks and banking systems. http://www.bis.org/publ/bcbs189.pdf (02.07.2012) Balin, Bryan J. 2008. Basel I, Basel II, and Emerging Markets: A Nontechnical Analysis. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1477712 (11.07.2012) Basel Committee on Banking Supervision. 2006. Results of the fifth quantitative impact study (QIS 5). http://www.bis.org/bcbs/qis/qis5results.pdf (11.07.2012) Bieg, Hartmut and Krämer, Georg. 2006. “Banking Supervision in Europe: From Basel I to Basel II” in Strategic Management – New Rules for Old Europe, pp. 73-82. Bundesfinanzministerium. 2010. Basel III: Einfach erklärt. http://www.bundesfinanzministerium. de/Content/DE/Standardartikel/Service/Einfach_erklaert/Basel-III-Artikel.html (17.06.2012) Cluff, Lawrence D. 1998. Risk-Based Capital: Regulatory and Industry Approaches to Capital and Risk. http://www.gao.gov/assets/160/156259.pdf (11.07.2012) Göran, Lind. 2005. Basel II – the new framework for bank capital. Sveriges Riksbank economic review. Stockholm. Greenbaum, Stuart I. and Anjan Thakor. 2007. Contemporary Financial Intermediation. Academic Press Advanced Finance. Waltham, Massachusetts. Humphrey, Thomas and Robert E. Keleher.1984. The Lender of Last Resort: A Historical Perspective. Federal Reserve Bank of Richmond.Working Paper 84-03. http://www.cato.org/pubs/journal/cj4n1/cj4n1-12.pdf (12.06.2012) Inderst, Roman.2009. Retail Finance: Rethinking Regulation and Consumer Protection in the Shadow of the Financial Crisis. European Business Organization Law Review. International Association of Deposit Insurers. 2011. Deposit Insurance Systems Worldwide. http://www.iadi.org/di.aspx?id=67 (19.06.2011) Jablecki, Juliusz. 2009 .The impact of Basel I capital requirements on bank behavior and the efficacy of monetary policy. International Journal of Economic Sciences and Applied Research 2 (1) pp. 16 – 35 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1517743 V Koch, Timothy W. and S. Scott MacDonald. 2010. Bank Management. South-Western Cengage Learning. KPMG. 2011. Basel III: Issues and implications. http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/basellIII-issues-implications.pdf (18.06.2012) Lall, Ranjit. 2009. Global Economic Governance Program: Why Basel II Failed and Why Any Basel III is Doomed. http://www.globaleconomicgovernance.org/wp-content/uploads/GEGWorking-paper-Ranjit-Lall.pdf (11.07.2012) MacNeil,Iain G and Justin O’Brien. 2010. The Future of Financial Regulation. Hart Publishing. Oxford and Portland, Oregon. Natter, Raymond. 2005. The Basel II Standardized Approach. http://apps.americanbar.org/buslaw/committees/CL130000pub/newsletter/200609/natter.pdf (11.07.2012) Oertel, Frank. 2011. Basel III: Capital Changes. http://frank-oertelmath.de/On_Basel_III_Feb_2011.pdf (27.06.2012) Oatley, Thomas, 2000. The Dilemmas of International Financial Regulation. In Regulation Vol. 23 No. 4, pp. 36-39. Saidenberg, Marc and Til Schuermann. 2003. The New Basel Capital Accord and Questions for Research. http://fic.wharton.upenn.edu/fic/papers/03/0314.pdf (11.07.2012) Spong, Kenneth. 2000. Banking Regulations: Its Purposes, Implementation and Effects. Fifth Edition. Division of Supervision and Risk Management Federal Reserve Bank of Kansas City. Tarullo, Daniel K. 2008. Banking on Basel: The Future of International Financial Regulation. Peterson Institute for International Economics. Washington, DC. Trichet, Jean-Claude. 2004. Announcement of Basel II. http://www.bis.org/review/r040628a.pdf (12.06.2012) Wallison, Peter J. 2005. “Why Do We Regulate Banks?” in Regulation: Winter 2005, Vol. 28 No. 4, pp. 14-19. Williams, Grant. 2011. Things that make you go hmm. http://www.scribd.com/fullscreen/73252521? access_key=key-1ponh2jnc09vkw1s072f (27.06.2012) VI
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