THE NEW BASEL ACCORD: TAKING CUES FROM THE ASIAN FINANCIAL CRISISExpressO (2008)
AbstractIn complex financial relations, banks have a crucial role to play. They are the promoters of growth and they contribute in strengthening economies. For the same reason, considerable emphasis is laid on ensuring that banks do not default. Banks are the custodians of savings and generator of funds. At the international front, a crucial initiative in this direction was taken by the Basel Committee on Banking Supervision. The Basel Committee has come out with two Accords till date, namely, the International Convergence of Capital Measurement and Capital Standards, released in 1988 and International Convergence of Capital Measurement and Capital Standards, released in 2004. The latter Accord is of recent release. Due to by nature being “soft laws”, the Basel Accords have to look forward to adoption by countries. The Asian Crisis that occurred in 1997 contributed to the turn of events. It was being realized that Basel I had become obsolete and required to be replaced. The Asian crisis made this come in prominence. Once again the Committee came out with a new Accord. Now it is on this Accord to prove its ability to overcome the shortcomings of the previous Accord and to ensure that crises like the Asian crisis do not resurface.
Publication DateSeptember 12, 2008
Citation InformationMegha Sharma. "THE NEW BASEL ACCORD: TAKING CUES FROM THE ASIAN FINANCIAL CRISIS" ExpressO (2008)
Available at: http://works.bepress.com/megha_sharma/1/