The BIS capital adequacy “rules”: a critique

oleh: M.J.B. HALL

Format: Article
Diterbitkan: Associazione Economia civile 2013-10-01

Deskripsi

The Basle Supervisors' Committee (BIS) capital adequacy proposals of July 1988 called on the G10 supervisory authorities to ensure that all internationally active banks falling under their jurisdiction observe a minimum 8 per cent risk-asset ratio by the end of 1992. This article presents a critique, not of the general principles of Basle, but of the details that are seen to weaken the value of the agreement. The risk-asset ratio and the derivation of risk weights are considered.   JEL: G21, G32, G28