The Effectiveness of Basel II

Shaw, Rachel (2014) The Effectiveness of Basel II. Undergraduate thesis, under the direction of Joshua Hendrickson from Economics, The University of Mississippi.


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The New Capital Accord, Basel II, was published in 2004. It features updated capital requirements and new ways to measure bank risk; however, the validity of these new standards was called into question during the financial crisis that began in 2008. The measures that intend to stabilize our banking system did not appear sufficient. Doubt was cast upon capital requirements, and the advantages of another system, such as contingent liability, can be seen. This thesis aims to test the effectiveness of Basel II, specifically its capital requirements, in reducing bank risk. After running a fixed effects model, one can clearly see that Basel II is insignificant in reducing bank risk, as measured by the percentage of non-performing loans to total gross loans.

Item Type: Thesis (Undergraduate)
Creators: Shaw, Rachel
Student's Degree Program(s): B.A. in International Studies and B.Accy. in Accountancy
Thesis Advisor: Joshua Hendrickson
Thesis Advisor's Department: Economics
Institution: The University of Mississippi
Subjects: H Social Sciences > HC Economic History and Conditions
Depositing User: Unnamed user with email
Date Deposited: 09 May 2014 18:47
Last Modified: 09 May 2014 18:47

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