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Non-G-10 Countries and the Basle Capital Rules: How Tough a Challenge is it to Join the Basle Club?
Author:
Ms. Claudia H Dziobek
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Ms. María Nieto null

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Mr. Olivier M Frecaut
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Series:
IMF Policy Discussion Papers
Volume/Issue:
Volume 1995: Issue 005
Language:
English
Publication Date:
01 Mar 1995
DOI:
https://doi.org/10.5089/9781451972467.003
ISBN:
9781451972467
ISSN:
1564-5193
Pages:
22
Keywords:
PDP; Basel; bank; Basle capital accord; G-10; rule; Basle capital standard; risk weight; bank supervisor; reporting practice; Basle capital ratio calculation; Capital adequacy requirements; Bank supervision; Loans; Financial statements; Foreign banks; Global
Legal-disclaimer:
This Policy Discussion Paper should not be reported as representing the views of the IMF. The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Policy Discussion Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
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The 1988 Basle Capital Accord has introduced the norm of a risk-based capital ratio of 8 percent. It was negotiated among the G-10 countries to strengthen their international banks’ capital base while simultaneously levelling the playing field for competition. Since 1988, a large number of non-G-10 countries, although not members of the “Basle Club,” have introduced similar risk-based capital ratios, hoping to achieve similar effects in terms of enhanced safety and competition in their banking markets. This paper explains why the endeavor failed in most cases and discusses what the required conditions would be for effective implementation of the Basle rules beyond the G-10 countries.
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Cover IMF Policy Discussion Papers
IMF Policy Discussion Papers
ISSN:
1564-5193
Publisher:
International Monetary Fund