An in-depth analysis of the Basel Accords, and the implication of adopting these accords in the emerging markets
Following the global financial crisis in 2007/8 the various bank regulators sought to question the effectiveness of existing financial regulation. Regulators questioned the causes of the system wide failures experienced during the crisis, with a view of implementing new regulation that ensures that these system wide failures never reoccur. What ensued was the release of most recent iteration of the Basel Capital Accords, Basel III, which sought to improve the quality and quantity of banks' capital. This paper discusses the various versions of the Basel Capital Accords, the rationale behind the creation of these Accords, as well as the how the short comings of each Accord were addressed in subsequent versions of the accord. Furthermore, this paper also highlights the unintended consequences that the most recent iteration of the Accords, Basel III, has on emerging markets, and the banking sector within these markets.
Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2014.