A review of these
Basel Accords begs the obvious questions: on what legal basis does the BCBS issue standards and ensure they are enforced?
For example, Kashyap and Stein (2004) argue that
Basel Accord II exacerbates business cycle fluctuations by requiring banks to hold more capital during downturns.
The conditions for security interests in personal property to reduce regulatory capital under the
Basel Accords are tested against modern secured transactions laws.
From the above discussion it is pretty much clear that though overall Basel capital regulations has decreased the risk taken by banks by decreasing non-performing loans, however this reduction is not consistent across all
Basel accords, especially Basel I has not the reduced the risks taken by banks.
The second phase included the issuance of rules for corporate governance, the implementation of the
Basel Accords, and the provision of funding for small projects.
INTERNATIONAL REGULATORY REGIMES: BRETTON WOODS AND THE
BASEL ACCORDS A.
I could not speak about regulation in banking without mentioning the
Basel Accords (recommendations on banking regulations)--Basel I, Basel II and Basel III--issued by the Basel Committee on Banking Supervision (BCBS).
There have been three
Basel Accords, Basel I, II, and III since the inception of the Basel Committee, all of which were intended to replace simple regulatory leverage ratios with more complex, granular, calculations of bank capital ratios.
Cemex said it continues to make progress in reducing emissions and controlling production processes by measuring the carbon footprint based on international standards and the
Basel Accords. Based on the
Basel Accords, the company said its carbon emissions per ton of cement have fallen by 9.36%, bringing the firm closer to its 2015 target of a 10% reduction against the 2006 level.
Federal Regulators generally adopt rules consistent with the
Basel Accords. The first Basel Capital Accord was published in July 1988 and fully implemented in the United States by the end of 1992.
The third installment of the
Basel Accords was developed in response to the deficiencies in financial regulation revealed by the late-2000s financial crisis.