Understanding and addressing the pro-cyclicality impact of Basel II in the SEACEN countries
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Understanding and addressing the pro-cyclicality impact of Basel II in the SEACEN countries by Pungky Purnomo Wibowo

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Published by South East Asian Central Banks, Research and Training Centre in Kuala Lumpur, Malaysia .
Written in English


Book details:

Edition Notes

Includes bibliographical references (p. 174-175).

StatementPungky Purnomo Wibowo.
ContributionsSouth-East Asian Central Banks. Research and Training Centre.
The Physical Object
Paginationx, 198 p. :
Number of Pages198
ID Numbers
Open LibraryOL23398670M
ISBN 109839478672
LC Control Number2009318378
OCLC/WorldCa373562542

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Pungky Purnomo Wibowo, "Understanding and Addressing The Pro-Cyclicality Impact of Basel II in The SEACEN Countries," Research Studies, South East Asian Central Banks (SEACEN) Research and Training Centre, number rp Handle: RePEc:sea:rstudy:rp measured on a book-value basis. A very limited degree of risk-sensitivity is achieved through discounts to the standard 8% that are applied to certain special classes of lending, e.g., to OECD member governments, to other banks in OECD countries, and for residential mortgages. 1Cited by: to enhance the Basel II framework with the aim to contain leverage and promote the build-up of counter-cyclical capital buffers in the banking sector. INTRODUCTION In the discussion on the impact of the revised regulatory framework for capital adequacy (Basel II), the potential for an amplifi ed pro-cyclicality in the fi nancial system and the. The Basel Committee issued a final package of measures to enhance the three pillars of the Basel II framework and to strengthen the rules governing trading book capital. These measures were originally published for public consultation in January

Basel II is the second set of international banking regulations defined by the Basel Committee on Bank Supervision (BCBS). It is an extension of the regulations for minimum capital requirements as defined under Basel I. The Basel II framework operates under three pillars: Capital adequacy requirements, Supervisory review, and Market discipline. The Application of Basel II to Trading Activities and the Treatment of Double Default Effects • Final Version() “Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised Framework - Comprehensive Version” •Proposed revisions to the Basel II .   Understanding Basel II. Basel II is a second international banking regulatory accord that is based on three main pillars: minimal capital requirements, .   Academics, practitioners and policy makers have commented on the potential procyclicality of the New Basel Capital Accord (Basel II). So long as bank rating systems are responsive to changes in borrower default risk, capital requirements under the Internal Ratings Based (IRB) approach will tend to increase as an economy falls into recession and fall as an economy enters .

The main argument for making regulatory capital requirements more risk-sensitive is to improve allocational efficiency. But this may lead to intensified business cycles if regulators fail to take measures to prevent such an impact. In this first column i. The impact of Basel III on the operations of retail banks This publication looks to provide a bigger picture view of the impact and future of financial regulation in the EU. Chapter ten gives an overview of Basel II with sections on improving the reliability and safety of financial institutions and improving the control of financial institutions. consultation with the Leaders of G20 countries and Governors of Central Banks took steps to address these weaknesses by improving capital adequacy standards reducing pro-cyclicality, and strengthening the liquidity management of banks. The BCBS’s reforms to the international regulatory framework seek to increase _____ 1. Basel III) from It is said that the new regulatory framework has two core tasks: enhancing the micro-prudential rules in Basel II and adopting a macro-prudential overlay. For its micro-prudential purpose, Basel III introduces liquidity standards, enhances capital regulations, and implements leverage ratio regulations.