Banking regulation is a controversial and oft–debated topic in the financial, practical, and political spheres. With the implementation of the Basel II Accord––a new system designed to determine how much capital internationally active banks are required by supervisors to hold against their portfolio of risky assets––fierce debates will continue to emerge as uncertainty and fear of a competitive disadvantage mounts. What can banks expect when the Accord is realized? Some may experience substantial reductions in regulatory capital, and others, with similar risk portfolios, may not face comparable reductions in such capital, thereby impeding their ability to compete.
The Accord inevitably raises numerous competitive and strategic questions, many of which are answered in this unique volume. It brings together the most current thinking on the topic by both leading academic authorities and top–level representatives from the banking and regulatory community, including the prior and current Chairmen of the Basel Committee. The Future of Banking Regulation will prove an indispensable resource to any reader concerned with the ongoing evolution of international finance, law, and economics.