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Article: Implications of Basel II for different bank ownership patterns in Europe.(Report)
- Article from:
- Atlantic Economic Journal
- Article date:
- December 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Atlantic Economic Society. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Introduction
Basel II represents a sea change in the regulation of capital adequacy. It alters the managerial frame of reference for banks in many ways. While the new Accord better recognizes market realities and promises to narrow divergences between regulatory and economic definitions of capital, the variety and complexity of the issues addressed in Basel II put its ultimate effectiveness in doubt. Installing a new array of risk-management techniques introduces difficulties in implementation that will be hard to get right. Many academics and bankers express concern about potential asymmetric and unpredictable effects. In this respect, participants in Basel II ...