The BIS capital adequacy “rules”: a critique

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 cri...

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Bibliographic Details
Main Author: M.J.B. HALL
Format: Article
Language:English
Published: Associazione Economia civile 2013-10-01
Series:PSL Quarterly Review
Subjects:
Online Access:https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10846
Description
Summary: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
ISSN:2037-3635
2037-3643