Font Size: a A A

The Legal Analysis Of The New Basel Capital Accord

Posted on:2005-03-16Degree:MasterType:Thesis
Country:ChinaCandidate:J L WangFull Text:PDF
GTID:2156360125956286Subject:International law
Abstract/Summary:PDF Full Text Request
The New Basel Capital Accord, which is going to be released by Basel Committee by the end of June 2004, is the latest result of Basel Committee, and represents the highest level of banking supervision. The New Basel Capital Accord absorbs the essence which is included in 1988 Capital Accord and other Basel papers, revises their disadvantages, and is improving gradually by practice. The New Basel Capital Accord consists of three pillars, which are Minimum Capital Requirements, Supervisory Review Process, and Market Discipline. The First Pillar improves the sensitivity of risk supervision; adopts the new approaches of risk supervision; covers the operational risk; enlarges the scope of credit risk mitigants; and regulates the activities of capital arbitrage. The Second Pillar insists the supervisory institution's dynamic role in banking supervision. The Third Pillar intends to strengthen the discipline from the market by information disclosure. The New Basel Capital Accord is to offer many useful references for China banking supervision. China has already adopted the content of Supervisory Review Process, Market Discipline, and part of Minimum Capital Requirements in legislation and practice so far. However, we are still far from capital adequacy, external rating, internal rating and operational risk management which are set up in The New Basel Capital Accord. Therefore the consummation of the four aspects will be the main challenges and difficulties of further implementation of The New Basel Capital Accord in China.
Keywords/Search Tags:The New Basel Capital Accord, Three Pillars, Succession, Amelioration, Partial Implementation
PDF Full Text Request
Related items