The New Basel Accord and Capital Concessions

  title={The New Basel Accord and Capital Concessions},
  author={Christine Ann Brown and Kevin Davis},
The new Basel Accord proposes an incentive, by way of a lower minimum capital ratio, for banks judged to have acceptable advanced risk management systems and which are thus to be regulated under the advanced (internal ratings based) rather than standardised approach. This paper investigates the case for such a proposed capital concession to such banks, and demonstrates circumstances under which it may be warranted. A methodology for estimating the appropriate size of capital concessions, which… CONTINUE READING