Emerging Issues in Banking Regulation

Author/Editor:

Sunil Sharma ; Ralph Chami ; Mohsin S. Khan

Publication Date:

May 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper provides an overview of the profound and rapid changes in banking brought about by technology and deregulation, and discusses the hurdles that will have to be negotiated for putting in place the three pillars-capital adequacy rules, supervision, and market discipline-of the bank regulatory framework envisioned by the New Basel Accord (Basel II). It argues that, especially for developing countries, finding the right balance between regulation, supervision, and market discipline is likely to be difficult. Considerable technical expertise as well as political discipline-which can be viewed as a fourth pillar-will be required to implement Basel II.

Series:

Working Paper No. 2003/101

Subject:

Bank supervision Banking Capital adequacy requirements Deposit insurance Financial crises Financial institutions Financial regulation and supervision Financial statements Nonbank financial institutions Public financial management (PFM)

English

Publication Date:

May 1, 2003

ISBN/ISSN:

9781451852530/1018-5941

Stock No:

WPIEA1012003

Pages:

25

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